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Geography and the Determinants of Firm Exports in Indonesia

  • Farole, Thomas
  • Rodriguez-Pose, Andres
  • Tselios, Vassilis
  • Winkler, Deborah

This paper uses data from the Indonesian manufacturing census in order to uncover the determinants of firm exports over the period 1990-2005. We examine to what extent differences in firm export propensity and intensity are a consequence of firm-level (microeconomic), of place-based (macroeconomic) first- and second-nature geography characteristics, or of a combination of the two. The results indicate that both internal and external factors matter. Second-nature, rather than first-nature, geography makes an important difference. The conditions of a firm’s province and those of neighboring provinces shape firm exports. Agglomeration effects, education and transport infrastructure endowment play a particularly relevant role in Indonesian firms’ export propensity, while export spillovers increase export intensity.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9342.

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Date of creation: Feb 2013
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Handle: RePEc:cpr:ceprdp:9342
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