Agglomeration, related-variety and internationalisation. Does a relationship exist?

Giulio Cainelli, Eleonora Di Maria and Roberto Ganau

No 1114, Openloc Working Papers from Public policies and local development

Abstract: This paper uses a large sample of Italian manufacturing firms over the period 2004-2006, to investigate whether different types of agglomeration externalities affect firms’ internationalisation modes. In addition to specialisation economies, Jacobs externalities are analysed following the recent contribution by FRENKEN et al. (2007) which distinguishes between related and unrelated variety. Econometric results show that agglomeration externalities – in particular, specialisation and related-variety – positively affect export, while they do not affect the multinational strategy. Moreover, results show that the impact of agglomeration externalities on firms’ internationalisation decisions is higher for small sized firms.

Keywords: Agglomeration; externalities; internationalisation (search for similar items in EconPapers)
JEL-codes: F23 R12 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-int and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:trn:utwpol:1114

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