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Geography and the Determinants of Firm Exports in Indonesia

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  • Farole, Thomas
  • Rodríguez-Pose, Andrés
  • Tselios, Vassilis
  • Winkler, Deborah

Abstract

This paper uses data from the Indonesian manufacturing census in order to uncover the determinants of firm exports over the period 1990-2005. We examine to what extent differences in firm export propensity and intensity are a consequence of firm-level (microeconomic), of place-based (macroeconomic) first- and second-nature geography characteristics, or of a combination of the two. The results indicate that both internal and external factors matter. Second-nature, rather than first-nature, geography makes an important difference. The conditions of a firm’s province and those of neighboring provinces shape firm exports. Agglomeration effects, education and transport infrastructure endowment play a particularly relevant role in Indonesian firms’ export propensity, while export spillovers increase export intensity.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9342.

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Date of creation: Feb 2013
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Handle: RePEc:cpr:ceprdp:9342

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Keywords: Asia; Export intensity; Export propensity; Geography; Indonesia; Macro-factors; Micro-factors;

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Cited by:
  1. Antonietti,Roberto & Marzucchi,Alberto, 2013. "Green investment strategies and export performance: A firm-level investigation," INGENIO (CSIC-UPV) Working Paper Series 201302, INGENIO (CSIC-UPV).
  2. Enrique López-Bazo & Elisabet Motellón, 2013. "“Firm exports, innovation, … and regions”," IREA Working Papers 201308, University of Barcelona, Research Institute of Applied Economics, revised May 2013.

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