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

  • Francisco Silvente

    ()

  • Juana Giménez

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

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File URL: http://hdl.handle.net/10.1007/s11187-005-7324-3
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Article provided by Springer in its journal Small Business Economics.

Volume (Year): 28 (2007)
Issue (Month): 1 (January)
Pages: 69-86

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Handle: RePEc:kap:sbusec:v:28:y:2007:i:1:p:69-86
DOI: 10.1007/s11187-005-7324-3
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