The pattern of trade between nations is well understood, but much less is known about firm level determinants to export: why do some firms start to export while others continue to produce for the domestic market? One reason for different firm strategies could be that the fixed costs for export differs between firms. This paper examines if foreign contacts decrease export-costs and thereby have a positive impact on the export propensity. More specifically, are establishments which have large degrees of foreign contacts relatively likely to become exporters? Three different types of foreign contacts are examined: foreign ownership, import, and regional presence of Foreign Direct Investment. The study is conducted using Indonesian establishment data covering all manufacturing establishments with more than 20 employees.
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Length: 26 pages Date of creation: 22 Jun 1999 Date of revision: Handle: RePEc:hhs:hastef:0326
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Find related papers by JEL classification: F10 - International Economics - - Trade - - - General F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992.
"Growth in Cities,"
Journal of Political Economy,
University of Chicago Press, vol. 100(6), pages 1126-52, December.
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Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991.
"Growth in Cities,"
NBER Working Papers
3787, National Bureau of Economic Research, Inc.
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