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Geography and the determinants of firm exports in Indonesia

Rodríguez-Pose, Andrés, Tselios, Vassilis, Winkler, Deborah and Farole, Thomas (2013) Geography and the determinants of firm exports in Indonesia. World Development, 44 . pp. 225-240. ISSN 0305-750X

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Abstract

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.

Item Type: Article
Official URL: http://www.journals.elsevier.com/world-development
Additional Information: © 2013 Elsevier Ltd.
Library of Congress subject classification: H Social Sciences > HF Commerce
Sets: Departments > European Institute
Departments > Geography and Environment
Research centres and groups > Spatial Economics Research Centre
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Funders: European Research Council
Projects: (FP7/2007-2013)/ERC Grant agreement no. 269868
Date Deposited: 20 Feb 2013 11:16
URL: http://eprints.lse.ac.uk/48759/

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