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Domestic transport infrastructure and firms’ export market participation

Author Info

  • Pedro Albarran

    ()

  • Raquel Carrasco

    ()

  • Adelheid Holl

    ()

Abstract

Investment in transport infrastructure reduces the cost of distance and enables firms to establish contacts over larger distances. Using data from a panel of Spanish manufacturing firms and geographic information system techniques, this article studies the impact of domestic transport cost reductions on firms’ export market participation, taking into account the role of entry costs and other firm characteristics. We estimate dynamic probability models, controlling for the unobserved heterogeneity of firms and for the simultaneity of firms’ export and location decisions. Our results demonstrate a positive effect of domestic transport infrastructure improvements on small and medium-sized firms’ probability of exporting. Copyright Springer Science+Business Media, LLC. 2013

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File URL: http://hdl.handle.net/10.1007/s11187-011-9393-9
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Article provided by Springer in its journal Small Business Economics.

Volume (Year): 40 (2013)
Issue (Month): 4 (May)
Pages: 879-898

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Handle: RePEc:kap:sbusec:v:40:y:2013:i:4:p:879-898
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100338

Keywords: Export decisions; Road transport infrastructure; Accessibility; Dynamic panel data; Geographic information systems; F14; R1; R4; L26;

Find related papers by JEL classification:

  • F14 - International Economics - - Trade - - - Empirical Studies of Trade
  • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
  • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
  • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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Cited by:

  1. Coşar, A. Kerem & Demir, Banu, 2016. "Domestic road infrastructure and international trade: Evidence from Turkey," Journal of Development Economics, Elsevier, vol. 118(C), pages 232-244.
  2. Josip Kotlar & Alfredo De Massis & Hanqing Fang & Federico Frattini, 2014. "Strategic reference points in family firms," Small Business Economics, Springer, vol. 43(3), pages 597-619, October.

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