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Information Spillovers and the Choice of Export Destination: A Multinomial Logit Analysis of Spanish Young SMEs

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  • Francisco Silvente
  • Juana Giménez

Abstract

Does having more firms around exporting to a particular destination improve the chances of exporting to that destination (e.g. through information spillovers)? We answer this question implementing a multinomial logit model of whether a firm exports to a particular country. To identify the source of information spillovers, we construct indicators of geographical concentration of exporters selling to a specific destination: within industry, multinationals and across industries. In our application with data for Spanish new small sized firms, only within-industry agglomeration of exporting domestic firms significantly affects the probability of small sized firms exporting to the same destination. The significance of localisation economies is robust to a barrage of controls including destination specific characteristics, gravitational factors (distance and level of development), firm heterogeneity (size) and regional differences. Copyright Springer 2007

Suggested Citation

  • Francisco Silvente & Juana Giménez, 2007. "Information Spillovers and the Choice of Export Destination: A Multinomial Logit Analysis of Spanish Young SMEs," Small Business Economics, Springer, vol. 28(1), pages 69-86, January.
    • Handle: RePEc:kap:sbusec:v:28:y:2007:i:1:p:69-86
    DOI: 10.1007/s11187-005-7324-3
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    Cited by:

    1. Dieter Pennerstorfer, 2011. "FAMO – Fachkräftemonitoring. Regelmäßige Erhebung des Angebots und des Bedarfs an Fachkräften in der Grenzregion Ostösterreichs mit der Slowakei. FAMO II: Immigration und Spillover-Effekte als Bestimm," WIFO Studies, WIFO, number 42873, April.
    2. Jianhua Duan & Kuntal K. Das & Laura Meriluoto & W. Robert Reed, 2019. "Spillovers and Exports: A Meta-Analysis," Working Papers in Economics 19/19, University of Canterbury, Department of Economics and Finance.
    3. Jaan Masso & Kärt Rõigas & Priit Vahter, 2015. "Foreign market experience, learning by hiring and firm export performance," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(4), pages 659-686, November.
    4. Shibi He & Volodymyr Lugovskyy, 2018. "Domestic Spillovers and Foreign Networks in Exporting," CAEPR Working Papers 2018-005, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    5. Dieter Pennerstorfer, 2011. "Export, Migration, and Costs of Market Entry: Evidence from Central European Firms," WIFO Working Papers 405, WIFO.
    6. Jianhua Duan & Kuntal K. Das & Laura Meriluoto & W. Robert Reed, 2020. "Estimating the effect of spillovers on exports: a meta-analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(2), pages 219-249, May.
    7. Mariasole Bann√ö & Diego Giuliani & Enrico Zaninotto, 2014. "Going abroad on regional shoulders: The role of spillovers on the composition of regional exports," DEM Discussion Papers 2014/06, Department of Economics and Management.
    8. V. Pradeep & Mita Bhattacharya & Jong-Rong Chen, 2017. "Spillover Effects of Research and Development, Exports and Foreign Investment on Productivity," Journal of South Asian Development, , vol. 12(1), pages 18-41, April.
    9. Kenan Huremovi'c & Federico Nutarelli & Francesco Serti & Fernando Vega-Redondo, 2024. "Learning Trade Opportunities through Production Network," Papers 2405.13422, arXiv.org.
    10. Rodríguez-Gulías, María Jesús & Fernández-López, Sara & Rodeiro-Pazos, David, 2024. "Foreign knowledge sources and innovation: Differences across large and small and medium-size multinational enterprises (MNEs)," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 741-757.
    11. Roberto Ramos & Enrique Moral-Benito, 2013. "Agglomeration matters for trade," Working Papers 1316, Banco de España.
    12. Jaan Masso & Kärt Rõigas & Priit Vahter, 2014. "Foreign Market Experience, Learning by Hiring and Firm Export," Discussion Papers 26, Central European Labour Studies Institute (CELSI).
    13. Juliette Milgram-Baleix, 2009. "Do Spanish firms learn from firms located nearby?," Economic Working Papers at Centro de Estudios Andaluces E2009/09, Centro de Estudios Andaluces.
    14. Mohamad D. Revindo & Christopher Gan, 2018. "Factors Affecting Variation in SMES' Export Intensity," LPEM FEBUI Working Papers 201820, LPEM, Faculty of Economics and Business, University of Indonesia, revised May 2018.
    15. Antonia Mercedes García-Cabrera & María Gracia García-Soto & Sonia María Suárez-Ortega, 2017. "Macro-level spillovers and micro-level capabilities as antecedents of young SMEs’ propensity to export and to become a born global," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1199-1220, December.
    16. Per Botolf Maurseth & Hege Medin, 2017. "Market-specific Sunk Export Costs: The Impact of Learning and Spillovers," The World Economy, Wiley Blackwell, vol. 40(6), pages 1105-1127, June.

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    More about this item

    Keywords

    export destination; information spillovers; multinomial logit; F10; F23; L10;
    All these keywords.

    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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