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Determinants of Dutch Export Destinations: The Role of Experience and Spillover Effects


Publication Number: 86
Authors: R. van den Hengel, N. Oomes & T. Smits

This paper reports evidence of positive experience and spillover effects in the export destinations
of Dutch firms over the period 2009-2014. We find strong evidence for positive experience effects,
which increase with geographical proximity. This means that a Dutch firm is more likely to export
to a particular destination when it has exported to that destination (or region) before. The evidence
for positive spillover effects is weaker, but strongest at the sectoral level and sector-province level.
This means that a Dutch firm is more likely to export to a particular destination when other firms
in the same sector (and province) have experience with exporting to that destination. These results
are generally robust to controlling for other determinants of export destinations that are used in
standard ‘gravity models’, such as contiguous borders or a shared common language. The existence
of experience and spillover effects among Dutch exporters implies that Dutch government policies,
such as the provision of export credit insurance for exports to particular ‘underserved’ countries,
can have a sustainable long-term impact on future Dutch exports to these countries.


Category: discussion papers