Spillovers, Foreign Investment, and Export Behavior

43 Pages Posted: 10 Jul 2000 Last revised: 30 Jul 2010

See all articles by Brian Aitken

Brian Aitken

International Monetary Fund (IMF)

Gordon H. Hanson

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS); National Bureau of Economic Research (NBER)

Ann E. Harrison

University of Pennsylvania - Management Department; National Bureau of Economic Research (NBER)

Date Written: December 1994

Abstract

Case studies of export behavior suggest that firms who penetrate foreign markets reduce entry costs for other potential exporters, either through learning by doing or through establishing buyer- supplier linkages. We pursue the idea that spillovers associated with one firm's export activity reduce the cost of foreign market access for other firms. We identify two potential sources of spillovers: export activity in general and the specific activities of multinational enterprises. We use a simple model of export behavior to derive a logit specification for the probability a firm exports. Using panel data on Mexican manufacturing plants, we find evidence consistent with spillovers from the export activity of multinational enterprises but not with general export activity.

Suggested Citation

Aitken, Brian and Hanson, Gordon H. and Harrison, Ann E., Spillovers, Foreign Investment, and Export Behavior (December 1994). NBER Working Paper No. w4967. Available at SSRN: https://ssrn.com/abstract=226566

Brian Aitken

International Monetary Fund (IMF)

700 19th Street NW
Washington, DC 20431
United States

Gordon H. Hanson (Contact Author)

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS) ( email )

9500 Gilman Drive
La Jolla, CA 92093-0519
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Ann E. Harrison

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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