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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

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  • 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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    References listed on IDEAS

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    1. Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, pages 103-132.
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    Citations

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    Cited by:

    1. 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.
    2. Dieter Pennerstorfer, 2011. "Export, Migration, and Costs of Market Entry: Evidence from Central European Firms," WIFO Working Papers 405, WIFO.
    3. Roberto Ramos & Enrique Moral-Benito, 2013. "Agglomeration matters for trade," Working Papers 1316, Banco de España;Working Papers Homepage.
    4. Jaan Masso, 2014. "Foreign Market Experience, Learning by Hiring and Firm Export," Discussion Papers 26, Central European Labour Studies Institute (CELSI).
    5. repec:spr:intemj:v:13:y:2017:i:4:d:10.1007_s11365-017-0451-x is not listed on IDEAS
    6. 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.
    7. 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.

    More about this item

    Keywords

    export destination; information spillovers; multinomial logit; F10; F23; L10;

    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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