Exporting to the far and near abroad

This study explores overseas expansion of firms from a small emerging market, Uruguay. The study identifies and seeks to explain a positive correlation between exports as a share of total sales and a concentration of exports to further distant countries. Empirical tests show that Uruguayan firms were more heavily involved in exporting when they were larger, had broader international experience, adapted their products to foreign markets, were in the textile and clothing sector, and when they had greater exports to the far abroad. A focus on customer service relates to export expansion once exports to the far abroad had achieved a certain threshold.