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Geography and the Determinants of Firm Exports in Indonesia

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  • Rodríguez-Pose, Andrés
  • Tselios, Vassilis
  • Winkler, Deborah
  • Farole, Thomas

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.

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  • Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," CEPR Discussion Papers 9342, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:9342
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    More about this item

    Keywords

    Asia; Export intensity; Export propensity; Geography; Indonesia; Macro-factors; Micro-factors;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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