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Information Spillovers and the Choice of Export Destination: A Multinomial Logit Analysis of Spanish Young SMEs

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  • Francisco Silvente

    ()

  • Juana Giménez

Abstract

Does having more firms around exporting to a particular destination improve the chances of exporting to that destination (e.g. through information spillovers)? We answer this question implementing a multinomial logit model of whether a firm exports to a particular country. To identify the source of information spillovers, we construct indicators of geographical concentration of exporters selling to a specific destination: within industry, multinationals and across industries. In our application with data for Spanish new small sized firms, only within-industry agglomeration of exporting domestic firms significantly affects the probability of small sized firms exporting to the same destination. The significance of localisation economies is robust to a barrage of controls including destination specific characteristics, gravitational factors (distance and level of development), firm heterogeneity (size) and regional differences. Copyright Springer 2007

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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 28 (2007)
Issue (Month): 1 (January)
Pages: 69-86

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Handle: RePEc:kap:sbusec:v:28:y:2007:i:1:p:69-86

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Web page: http://www.springerlink.com/link.asp?id=100338

Related research

Keywords: export destination; information spillovers; multinomial logit; F10; F23; L10;

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References

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  2. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning By Exporting Important? Micro-Dynamic Evidence From Colombia, Mexico, And Morocco," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 903-947, August.
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  5. Leonardo Becchetti & Stefania Rossi, 2000. "The Positive Effect of Industrial District on the Export Performance of Italian Firms," Review of Industrial Organization, Springer, vol. 16(1), pages 53-68, February.
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  9. Leonidas C Leonidou & Constatine S Katsikeas, 1996. "The Export Development Process: An Integrative Review of Empirical Models," Journal of International Business Studies, Palgrave Macmillan, vol. 27(3), pages 517-551, September.
  10. Michael Devereux & Rachel Griffith, 1996. "Taxes and the location of production: evidence from a panel of US multinationals," IFS Working Papers W96/14, Institute for Fiscal Studies.
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Cited by:
  1. Dieter Pennerstorfer, 2012. "Export, Migration, and Costs of Market Entry: Evidence from Central European Firms," ERSA conference papers ersa12p954, European Regional Science Association.
  2. Roberto Ramos & Enrique Moral-Benito, 2013. "Agglomeration matters for trade," Banco de Espa�a Working Papers 1316, Banco de Espa�a.
  3. Juliette Milgram-Baleix, 2009. "Do Spanish firms learn from firms located nearby?," Economic Working Papers at Centro de Estudios Andaluces E2009/09, Centro de Estudios Andaluces.

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