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Networks and the Dynamics of Firms' Export Portfolio: Evidence for Mexico
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Networks and the Dynamics of Firms' Export Portfolio: Evidence for Mexico

Author

Listed:
  • Juan de Lucio

    (High Council of Spanish Chambers of Commerce, Spain)

  • Raúl Mínguez

    (High Council of Spanish Chambers of Commerce, Spain)

  • Asier Minondo

    (Deusto Business School, Spain)

  • Francisco Requena

    (University of Sheffield, United Kingdom)

Abstract

In this paper we use network-analysis tools to identify communities in the web of exporters' destinations. Next we use our network-based community measure as predictor of additional countries chosen by firms expanding their export destination portfolio. We defend that our network-based community measure is superior to extended gravity measures. This superiority stems from the fact that community is a revealed measure, is country-specific and can be calculated at the industry level. Using data on Mexican new exporters over the period 2003-2009, we show that the probability of choosing a new export destination multiplies almost by three if it belongs to the same community of any of the firm's previous destinations. The introduction of the network-based community variable improves the accuracy of the model up to 20% relative to a model that only includes gravity and extended gravity variables. We also show that industry-specific communities and general communities play similar roles in determining the dynamics of Mexican exporters' country portfolio.

Suggested Citation

  • Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2014. "Networks and the Dynamics of Firms' Export Portfolio: Evidence for Mexico," Working Papers 2014003, The University of Sheffield, Department of Economics.
    • Handle: RePEc:shf:wpaper:2014003
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    References listed on IDEAS

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    Cited by:

    1. Thede, Suanna & Karpaty, Patrik, 2021. "The Effect of Corrupt Market Experience on FDI: Evidence from Swedish Manufacturing Enterprises," Working Papers 2021:4, Örebro University, School of Business.
    2. Xuejian Wang, 2020. "Product Differentiation and Geographical Expansion of Exports Network at Industry level," Papers 2012.07008, arXiv.org.
    3. Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2015. "Networks and the dynamics of firms’ export portfolio," Working Papers 1513, Banco de España.

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    More about this item

    Keywords

    export market; network analysis; modularity; extended gravity; Mexico;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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