Export Spatial Spillover Effects

Since China’s reform and opening-up the number of export firms and the export value of those firms have soared, however, both the export firm and the export value distribute unequally between regions in China. The prevailing view that the coast area has an advantage in exporting can only explain the difference between coast area and middle-west area. Unequal distribution can also be observed when looking into the difference between regions in coast area. This suggests that the phenomenon should be explained from other prospect.It is proposed that the agglomeration of export firms is beneficial. That means the agglomeration spillover exists between export firms. So it is easier to breed new export firms in the area where more export firms locate together. Also, it is easier for export firms in the area to increase their export value. The empirical research can be split into two parts. The first one is the export decision which is related to the born of new export firms, and the other one is the export propensity which is related to the increase of export value. Our estimation suggests that the spillover is positive when the export firms of the same industry locate together, but negative when those of different industries locate together.