Firm location and the determinants of exporting in low- and middle-income countries

Thomas Farole · Deborah Elisabeth Winkler

28 citations0/0 files storedJournal of Economic Geography

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Global trade and economics International Business and FDI Regional Economics and Spatial Analysis

Abstract

Using a cross-section of more than 35, 000 manufacturing and services firms in 76 low- and middle-income countries, we assess how firm location determines the likelihood of exporting. Results from a probit model show that, in addition to firm-specific characteristics, both regional investment climate and agglomeration factors have a significant impact on export participation. Export spillovers and industry diversity are associated with increased exporting, but the impact varies by location and sector. The analysis finds that firm-level determinants of exporting matter more for firms located in non-core regions, whereas regional determinants and agglomeration economies play a larger role in core regions.

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References

1990Increasing Returns and Economic Geography 1999Exceptional exporter performance: cause, effect, or both?1998Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco n.d.The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs.2004Why Some Firms Export 1997Spillovers, foreign investment, and export behavior 2004Chapter 61 Knowledge spillovers and the geography of innovation 2005Spatial spillovers and innovation activity in European regions

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