Board of directors and export spillovers: What is the impact on extensive margins of trade?

Abstract

Increased export experience on the board of nonexporting firms has a causal effect on their propensity to enter foreign markets in later periods. Using a universal set of Swedish employer–employee panel data for the period 2000–14, this paper finds evidence on spillover from exporters to non-exporting SMEs through outside board directors. The identification strategy to account for endogenous selection of external board members relies on external instruments and applications of different instrumental variable approaches, capturing also unobserved heterogeneity. Our findings are robust to controlling for export background among managers and employees, as well as firm size, human capital, total factor productivity, productivity spillovers, firm location and industry classification.