Journal Article

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

Thomas Farole and Deborah Winkler

in Journal of Economic Geography

Volume 14, issue 2, pages 395-420
Published in print March 2014 | ISSN: 1468-2702
Published online February 2013 | e-ISSN: 1468-2710 | DOI: https://dx.doi.org/10.1093/jeg/lbs060
Firm location and the determinants of exporting in low- and middle-income countries

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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.

Keywords: Export; agglomeration; location; region; F1; F2; R1

Journal Article.  10436 words.  Illustrated.

Subjects: International Trade ; International Factor Movements and International Business ; Urban, Rural, and Regional Economics

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