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Agglomeration, related-variety and internationalisation. Does a relationship exist?

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  • Giulio Cainelli
  • Eleonora Di Maria
  • Roberto Ganau

Abstract

This paper uses a large sample of Italian manufacturing firms over the period 2004-2006, to investigate whether different types of agglomeration externalities affect firms’ internationalisation modes. In addition to specialisation economies, Jacobs externalities are analysed following the recent contribution by FRENKEN et al. (2007) which distinguishes between related and unrelated variety. Econometric results show that agglomeration externalities – in particular, specialisation and related-variety – positively affect export, while they do not affect the multinational strategy. Moreover, results show that the impact of agglomeration externalities on firms’ internationalisation decisions is higher for small sized firms.

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Bibliographic Info

Paper provided by Public policies and local development in its series Openloc Working Papers with number 1114.

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Date of creation: 2011
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Handle: RePEc:trn:utwpol:1114

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Keywords: Agglomeration; externalities; internationalisation;

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