Journal Article

Agglomeration by export destination: evidence from Spain

Roberto Ramos and Enrique Moral-Benito

in Journal of Economic Geography

Volume 18, issue 3, pages 599-625
Published in print May 2018 | ISSN: 1468-2702
Published online November 2017 | e-ISSN: 1468-2710 | DOI: https://dx.doi.org/10.1093/jeg/lbx038
Agglomeration by export destination: evidence from Spain

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  • Urban, Rural, and Regional Economics
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Abstract

We use a dataset of Spanish exporters with rich spatial information to document the existence of agglomeration economies by export destination. More specifically, we show that, for a large set of export destinations, exporters are geographically too close to be the result of a random outcome. We also analyze the variables that explain the cross-destination heterogeneity in agglomeration. We find that firms selling to countries with worse institutions, a dissimilar language and a different currency are significantly more agglomerated. These results suggest that the value provided by agglomeration is higher concerning destinations where entry is more difficult.

Keywords: Agglomeration economies; export firms; international trade; R12; F14; D22

Journal Article.  11330 words.  Illustrated.

Subjects: Urban, Rural, and Regional Economics ; International Trade ; Production and Organizations

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