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

This paper reports evidence of positive experience and spillover effects in the export destinationsof 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 exportto a particular destination when it has exported to that destination (or region) before. The evidencefor 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 firmsin the same sector (and province) have experience with exporting to that destination. These resultsare generally robust to controlling for other determinants of export destinations that are used instandard ‘gravity models’, such as contiguous borders or a shared common language. The existenceof 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.