Exports and information spillovers

Exports and information spillovers

by Alessandro Nicita

Part of Policy research working paper ;

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A developing country's good (or bad) export performance in one market can affect its future export performance not only in the same market but also in "neighboring" markets. This happens if importers in different countries share information about a particular exporter's performance or if exporters themselves take advantage of the information acquired while exporting to similar markets. Thus, through information spillovers, export success (or failure) becomes cumulative across markets.

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