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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. 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).
    2. 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.
    3. 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.
    4. 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, March.
    5. 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.
    6. 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.
    7. Dieter Pennerstorfer, 2011. "Export, Migration, and Costs of Market Entry: Evidence from Central European Firms," WIFO Working Papers 405, WIFO.
    8. Kenan Huremovi'c & Federico Nutarelli & Francesco Serti & Fernando Vega-Redondo, 2024. "Learning Trade Opportunities through Production Network," Papers 2405.13422, arXiv.org.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. Enrique Moral-Benito, 2013. "Agglomeration Matters for Trade," 2013 Meeting Papers 85, Society for Economic Dynamics.
    15. Carsten Eckel & Ina Charlotte Jäkel & Luca Macedoni & Raymond Riezman & Raymond G. Riezman, 2024. "Testing the Waters: How Firms Enter New Markets," CESifo Working Paper Series 11340, CESifo.
    16. 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.
    17. 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.

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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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