Toasting With Strangers? Export Spillovers From Chinese Winery Acquisitions in the Bordeaux Vineyards

Foreign entrants may threaten and, at the same time, present local companies with opportunities for favourable spillovers. Building on the awareness-motivation-capability framework, this paper aims to provide empirical evidence for a positive co-location or spatial proximity effect of foreign presence on local peer companies’ exports. More specifically, through a spillover lens, this research examines how geographic proximity with Chinese-acquired companies and Chinese-owned wineries agglomeration density affect peers’ exports to China. We empirically address these objectives using a panel database of 1751 Bordeaux wineries located in rural communes in which Chinese acquisitions have occurred. Our findings reveal a clear export spillover effect at the very local micro- (commune-)level. We also find a significant strengthening effect of Chinese acquisition agglomeration density on export spillovers.