Export spillovers in Hungary

Spillovers from peers in the immediate environment can encourage firms to engage in trade. This study examines whether there are spillover effects in exporting activity, using Hungarian product–country-level manufacturing trade data used from 1993 to 2003. Evidence suggests that exporting activity exhibits spillovers and benefits that are country and product specific. In addition, export spillovers exhibit considerable heterogeneity. Foreign-owned firms benefit from peers generally and domestic firms only from the agglomeration of domestic exporters. Spillovers are positively related to country distance and negatively to market size.