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Heterogeneity and Number of Export Destinations of Italian Firms: A Hurdle Negative Binomial Regression Approach

Author

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  • Maria Rosaria Ferrante

    (Department of Statistical Sciences, University of Bologna, Bologna, Italy)

  • Marco Novelli

    (Department of Statistical Sciences, University of Bologna, Bologna, Italy)

Abstract

This article addresses on an aspect of firms internationalization so far little explored, the choice of the number of export destinations and a proxy of the complexity of the export activity. As the outcome variable is a count with an excess of zeros, we use a hurdle regression model for count data that also allow disentangling the aspect of heterogeneity related to the decision to export from those measuring the number of markets served. Some differences arise by the comparison between the estimates regarding the propensity to export model and those of the model describing the number of export destinations. Regarding the propensity to export, the estimated models support the familiar evidences already presented in literature: exporters are larger, more productive, more innovative and invest more. With reference to the number of export destinations, it seems that not only the larger the number of markets served the more productive, large and willing to invest is the firm but also firms engaged in multiple markets seem to be older, financially stable, and willing to support organizational and managerial innovations.

Suggested Citation

  • Maria Rosaria Ferrante & Marco Novelli, 2013. "Heterogeneity and Number of Export Destinations of Italian Firms: A Hurdle Negative Binomial Regression Approach," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 13(03n04), pages 391-416, December.
    • Handle: RePEc:wsi:gejxxx:v:13:y:2013:i:03n04:n:gej-2013-0026
    DOI: 10.1515/GEJ-2013-0026
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    References listed on IDEAS

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    1. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
    2. Mirabelle Muûls & Mauro Pisu, 2009. "Imports and Exports at the Level of the Firm: Evidence from Belgium," The World Economy, Wiley Blackwell, vol. 32(5), pages 692-734, May.
    3. David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, vol. 117(517), pages 134-161, February.
    4. Martin Andersson & Hans Lööf & Sara Johansson, 2008. "Productivity and International Trade: Firm Level Evidence from a Small Open Economy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(4), pages 774-801, December.
    5. Maria Rosaria Ferrante & Marzia Freo, 2012. "The Total Factor Productivity Gap between Internationalised and Domestic Firms: Net Premium or Heterogeneity Effect?," The World Economy, Wiley Blackwell, vol. 35(9), pages 1186-1214, September.
    6. Davide Castellani & Antonello Zanfei, 2007. "Internationalisation, Innovation and Productivity: How Do Firms Differ in Italy?," The World Economy, Wiley Blackwell, vol. 30(1), pages 156-176, January.
    7. Davide Castellani & Giorgia Giovannetti, 2010. "Productivity and the international firm: dissecting heterogeneity," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 13(1), pages 25-42.
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    Cited by:

    1. Subhayu Bandyopadhyay & Cletus C. Coughlin, 2014. "Determinants of trade margins: insights using state export data," Working Papers 2014-6, Federal Reserve Bank of St. Louis.
    2. Eleonora Fichera & Yevgeniya Shevtsova, 2020. "Sunk exporting costs and export market coverage," Manchester School, University of Manchester, vol. 88(4), pages 599-616, July.

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    More about this item

    Keywords

    firms’ internationalization; number of export destination; count data models; excess of zeros; C2; F13; F23; L2;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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