Firm location and the determinants of exporting in developing countries
AbstractUsing a cross-section of more than 40,000 manufacturing and services firms in 79 developing countries from the World Bank's Enterprise Surveys Database, this paper assesses how firm location determines the likelihood and extent of exporting in developing countries. Descriptive statistics confirm higher export participation (but not intensity) for firms in core versus non-core regions, despite the finding that firms in the core assess many aspects of the investment climate more negatively. Results from a probit model show that, in addition to firm-specific characteristics, both regional investment climate and agglomeration factors have a significant impact on export participation. Specifically, customs clearance and electricity quality matter for export participation for manufacturing firms. Although localization economies and export spillovers are associated with increased exporting, the opposite is found for urbanization economies for both manufacturing and services firms. The analysis finds that firm-level determinants of exporting matter more for firms located in non-core regions, while regional determinants and agglomeration economies play a larger role in core regions. The findings point to the presence of congestion costs in the core, and suggest that policy interventions to target export participation are likely to have a greater impact if they are focused on core regions over non-core regions, where firm-specific factors predominate. Moreover, the importance of export spillovers and localization economies highlights the potential value of efforts to remove barriers to natural agglomeration both in core and non-core regions, for example through investments in infrastructure, the provision of social services, and regional integration arrangements.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 5780.
Date of creation: 01 Aug 2011
Date of revision:
Regional Economic Development; Microfinance; E-Business; Banks&Banking Reform; Private Participation in Infrastructure;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-16 (All new papers)
- NEP-CSE-2011-09-16 (Economics of Strategic Management)
- NEP-DEV-2011-09-16 (Development)
- NEP-ENT-2011-09-16 (Entrepreneurship)
- NEP-GEO-2011-09-16 (Economic Geography)
- NEP-INT-2011-09-16 (International Trade)
- NEP-URE-2011-09-16 (Urban & Real Estate Economics)
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.:
- Pamina Koenig & Florian Mayneris & Sandra Poncet, 2010.
"Local Export spillovers in France,"
UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
- Pamina Koenig & Florian Mayneris & Sandra Poncet, 2009. "Local export spillovers in France," PSE Working Papers halshs-00566142, HAL.
- KOENIG, Pamina & MAYNERIS, Florian & PONCET, Sandra, . "Local export spillovers in France," CORE Discussion Papers RP -2225, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Pamina Koenig & Florian Mayneris & Sandra Poncet, 2009. "Local Export Spillovers in France," Working Papers 2009-18, CEPII research center.
- Eaton, Jonathan & Eslava, Marcela & Kugler, Maurice & Tybout, James, 2007.
"Export Dynamics in Colombia: Firm-Level Evidence,"
Working Paper Series
rwp07-050, Harvard University, John F. Kennedy School of Government.
- Jonathan Eaton & Marcela Eslava & Maurice Kugler & James Tybout, 2007. "Export Dynamics in Colombia:Firm-Level Evidence," BORRADORES DE ECONOMIA 003957, BANCO DE LA REPÚBLICA.
- Jonathan Eaton, Marcela Eslava, Maurice Kugler, and James Tybout, 2007. "Export Dynamics in Colombia: Firm-Level Evidence," Working Papers eg0038, Wilfrid Laurier University, Department of Economics, revised 2007.
- Jonathan Eaton & Marcela Eslava & Maurice Kugler & James Tybout, 2007. "Export Dynamics in Colombia: Firm-Level Evidence," NBER Working Papers 13531, National Bureau of Economic Research, Inc.
- Jonathan Eaton, Marcela Eslava, Maurice Kugler,James Tybout, 1970. "Export Dynamics in Colombia: Firm-Level Evidence," Working Papers eg0036, Wilfrid Laurier University, Department of Economics, revised 1970.
- Amiti, Mary & Smarzynska Javorcik, Beata, 2005.
"Trade Costs and Location of Foreign Firms in China,"
CEPR Discussion Papers
4978, C.E.P.R. Discussion Papers.
- Amiti, Mary & Smarzynska Javorcik, Beata, 2008. "Trade costs and location of foreign firms in China," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 129-149, February.
- International Monetary Fund, 2005. "Trade Costs and Location of Foreign Firms in China," IMF Working Papers 05/55, International Monetary Fund.
- Amiti, Mary & Javorcik, Beata Smarzynska, 2005. "Trade costs and location of foreign firms in China," Policy Research Working Paper Series 3564, The World Bank.
- Pamina Koenig, 2005.
"Agglomeration and the Export Decision of French Firms,"
2005-02, Centre de Recherche en Economie et Statistique.
- Koenig, Pamina, 2009. "Agglomeration and the export decisions of French firms," Journal of Urban Economics, Elsevier, vol. 66(3), pages 186-195, November.
- Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997.
"Spillovers, foreign investment, and export behavior,"
Journal of International Economics,
Elsevier, vol. 43(1-2), pages 103-132, August.
- Brian Aitken & Gordon H. Hanson & Ann E. Harrison, 1994. "Spillovers, Foreign Investment, and Export Behavior," NBER Working Papers 4967, National Bureau of Economic Research, Inc.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994. "Spillovers, Foreign Investment and Export Behavior," Papers 95-06, Columbia - Graduate School of Business.
- Rosina Moreno & Raffaele Paci & Stefano Usai, 2004.
"Spatial spillovers and innovation activity in European regions,"
ERSA conference papers
ersa04p588, European Regional Science Association.
- Rosina Moreno & Raffaele Paci & Stefano Usai, 2005. "Spatial spillovers and innovation activity in European regions," Environment and Planning A, Pion Ltd, London, vol. 37(10), pages 1793-1812, October.
- Roberto Antonietti & Giulio Cainelli, 2011. "The role of spatial agglomeration in a structural model of innovation, productivity and export: a firm-level analysis," The Annals of Regional Science, Springer, vol. 46(3), pages 577-600, June.
- Koenig, Pamina, 2010. "Local export spillovers in France," Open Access publications from UniversitÃ© catholique de Louvain info:hdl:2078.1/33465, Université catholique de Louvain.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.