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Firm location and the determinants of exporting in low- and middle-income countries

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  • Thomas Farole
  • Deborah Winkler

Abstract

Using a cross-section of more than 35,000 manufacturing and services firms in 76 low- and middle-income countries, we assess how firm location determines the likelihood of exporting. Results from a probit model show that, in addition to firm-specific characteristics, both regional investment climate and agglomeration factors have a significant impact on export participation. Export spillovers and industry diversity are associated with increased exporting, but the impact varies by location and sector. The analysis finds that firm-level determinants of exporting matter more for firms located in non-core regions, whereas regional determinants and agglomeration economies play a larger role in core regions.

Suggested Citation

  • Thomas Farole & Deborah Winkler, 2014. "Firm location and the determinants of exporting in low- and middle-income countries," Journal of Economic Geography, Oxford University Press, vol. 14(2), pages 395-420.
  • Handle: RePEc:oup:jecgeo:v:14:y:2014:i:2:p:395-420.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbs060
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    Cited by:

    1. Raffaele Brancati & Emanuela Marrocu & Manuel Romagnoli & Stefano Usai, 2018. "Innovation activities and learning processes in the crisis: evidence from Italian export in manufacturing and services," Industrial and Corporate Change, Oxford University Press, vol. 27(1), pages 107-130.
    2. Jarosław M. Nazarczuk & Stanisław Umiński & Tomasz Brodzicki, 2020. "Determinants of the spatial distribution of exporters in regions: the role of ownership," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(3), pages 547-574, June.

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