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

Thomas Farole and Deborah Winkler

Journal of Economic Geography, 2014, vol. 14, issue 2, 395-420

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.

Date: 2014
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