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Does the Type of Neighbor Matter?: Evidence of heterogeneous Export Spillovers on Domestic Companies in Mexico

Cardoso-Vargas, Carlos-Enrique (2016): Does the Type of Neighbor Matter?: Evidence of heterogeneous Export Spillovers on Domestic Companies in Mexico.

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Abstract

This document examines whether the probability of entering into new external markets or the increase in new export products on the part of Mexican firms are related to the proximity of diverse multinational firms exporting under different trade regimes (processing, ordinary or hybrid). The evaluation was made using a panel based on data from Mexican Customs and production from a sampling of national firms from 2003-2010. The results show that export spillover are far from homogeneous vis-à-vis Mexican firms, since their existence is related to the export activity (products and/or destinations) of neighboring foreign firms. Moreover, spillovers are more likely to appear in places where neighboring national and foreign firms have in common not only the same trade regime, but also the same technological level of production.

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