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Using stepping stones to enter distant export markets

Lejour,Arjan
; 
Creusen,Harold
Abstract
This paper analyses firms’ export entry decisions and their subsequent expansion to other export markets using Dutch firm-level international transaction data. In particular new exporters increase quickly the distance between their export markets and their home country. They are also going to export to countries in which the institutional and regulatory quality is lower. We show that firms follow a stepping stone approach for learning to export and to enter distant markets. The probability to enter a market at 1,000 km from the Netherlands increases by about 25% if the firm already exports to a market at 500 km from the new one.
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Date
2015-03-01
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Tilburg University Research Output Collection
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Keywords
heterogeneous firms, sequential export market entry, strategic export decisions, F10 - General, D22 - Firm Behavior: Empirical Analysis, F13 - Trade Policy ; International Trade Organizations
Citation
Lejour, A & Creusen, H 2015, 'Using stepping stones to enter distant export markets', Global Economy Journal, vol. 15, no. 1, pp. 107-132. https://doi.org/10.1515/gej-2014-0040
URI
https://hdl.handle.net/20.500.14602/69339
License
info:eu-repo/semantics/closedAccess
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