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Geography and the Determinants of Firm Exports in Indonesia

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

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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  • Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.
  • Handle: RePEc:eee:wdevel:v:44:y:2013:i:c:p:225-240
    DOI: 10.1016/j.worlddev.2012.12.002
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    1. Stephan Brunow & Luise Grünwald, 2014. "Exports, agglomeration and workforce diversity: An empirical assessment of German establishments," Norface Discussion Paper Series 2014008, Norface Research Programme on Migration, Department of Economics, University College London.
    2. 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).
    3. Enrique López-Bazo & Elisabet Motellón, 2013. "“Firm exports, innovation, … and regions”," AQR Working Papers 201305, University of Barcelona, Regional Quantitative Analysis Group, revised May 2013.
    4. Michele Imbruno & Tobias Ketterer, 2016. "Energy efficiency gains from trade in intermediate inputs: firm-level evidence from Indonesia," GRI Working Papers 244, Grantham Research Institute on Climate Change and the Environment.
    5. Raffaele Brancati & Emanuela Marrocu & Manuel Romagnoli & Stefano Usai, 2018. "Innovation activities and learning processes in the crisis: evidence from Italian export in manufacturing and services," Industrial and Corporate Change, Oxford University Press, vol. 27(1), pages 107-130.
    6. Fábio Batista & José Eduardo Matos & Miguel Costa Matos, 2017. "Assessing the Competitiveness of the Portuguese Footwear Sector," GEE Papers 0066, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Feb 2017.
    7. Sofia Wixe, 2015. "The Impact of Spatial Externalities: Skills, Education and Plant Productivity," Regional Studies, Taylor & Francis Journals, vol. 49(12), pages 2053-2069, December.
    8. Kuznetsova Maria, 2016. "Spatial structure and economic network formation of manufacturing exports in Russia," EERC Working Paper Series 16/08e, EERC Research Network, Russia and CIS.
    9. Antonietti, Roberto & Marzucchi, Alberto, 2014. "Green tangible investment strategies and export performance: A firm-level investigation," Ecological Economics, Elsevier, vol. 108(C), pages 150-161.
    10. Samira Barzin & Sabine D'Costa & Daniel Graham, 2016. "A Pseudo-Panel Approach to Estimating Dynamic Effects of Road Infrastructure Provision on Firm Performance in a Developing Country Context," Working Papers 69, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.

    More about this item

    Keywords

    export propensity; export intensity; geography; micro-factors; macro-factors; Indonesia; Asia;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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