The Pattern of Foreign Market Entry of Canadian Exporters

This paper employs a unique large-scale longitudinal (1997-2005) dataset to investigate the pattern of foreign market entry by 6,079 Canadian exporters. We have found that fewer firms are choosing the United States as their initial export destination. This trend suggests that a growing number of firms are not following the traditional stage model of internationalization. Furthermore, our results suggest that government support should be targeted towards young and small Canadian-controlled firms, since they are more likely than established firms to encounter barriers and to gain benefits from exporting to a wider range of foreign markets.