Internalization of externalities in international trade

Using disaggregated customs data about exporters from nine countries, I demonstrate that informational externalities are determinants of entry, survival, and growth at the product–destination market level. show who optimize entry decisions internalize survive longer grow faster. Then, conceptualize why enter certain international markets not all same origin in these markets. incorporate interaction between performance number peers a given to identify potential learning externality may be exposed to. Also, highlight that, even without formation formal networks, observation actions export can deliver implications for flows: need start small new if those reveal enough information. By helping explain how relationships grow, complement literature on diversification signal promotion agencies importance internalization by exporters.