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Global Economy Journal

The Official Publication of the International Trade and Finance Association

Ed. by Pelzman, Joseph


CiteScore 2018: 0.33

SCImago Journal Rank (SJR) 2018: 0.157
Source Normalized Impact per Paper (SNIP) 2018: 0.402

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Volume 15, Issue 1

Issues

Using Stepping Stones to Enter Distant Export Markets

Arjan Lejour
  • Corresponding author
  • CPB Netherlands Bureau for Economic Policy Analysis, PO Box 80153, 2508 GM The Hague, The Netherlands
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/ Harold Creusen
Published Online: 2015-01-29 | DOI: https://doi.org/10.1515/gej-2014-0040

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.

Keywords: strategic export decisions; sequential export market entry; heterogeneous firms

JEL Classification: F10; D22; F13

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About the article

Published Online: 2015-01-29

Published in Print: 2015-03-01


Citation Information: Global Economy Journal, Volume 15, Issue 1, Pages 107–132, ISSN (Online) 1553-5304, ISSN (Print) 2194-5659, DOI: https://doi.org/10.1515/gej-2014-0040.

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