Firm Location and the Determinants of Exporting in Developing Countries
Using a cross-section of more than 40,000 manufacturing and services firms in 79 developing countries from the World Bank's Enterprise Surveys Database, this paper assesses how firm location determines the likelihood and extent of exporting in...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110829090011 http://hdl.handle.net/10986/3544 |
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okr-10986-35442021-04-23T14:02:10Z Firm Location and the Determinants of Exporting in Developing Countries Farole, Thomas Winkler, Deborah ACCOUNTING ADVERTISING BANKS BUSINESS CLIMATE BUSINESS ENVIRONMENT BUSINESS SERVICES BUYERS CAPABILITIES CAPITAL REGION CENTRAL REGION COMPETITIVENESS COMPETITORS CONSUMER MARKETS CORE REGION CREDIT LINE CUSTOMS CUSTOMS CLEARANCE DATA LIMITATIONS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ELECTRICITY EMERGING MARKETS EMPLOYMENT ENTERPRISE SURVEY ENTERPRISE SURVEYS ENTREPRENEURSHIP EXPORT MARKET EXPORT MARKETS EXTERNALITIES FINANCIAL INSTITUTIONS FIRM SIZE FIRM SIZES FIRMS FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN MARKET FOREIGN MARKETS GLOBAL MARKETS GOVERNMENT CONTRACT GOVERNMENT REGULATION HUMAN CAPITAL INNOVATION INTERNATIONAL MARKETS INTERNATIONAL TRADE INVENTORY LICENSE LICENSES LICENSING LOCALISATION LOCALIZATION MANAGEMENT REVIEWS MANUFACTURERS MANUFACTURING MARKETING MARKETING STRATEGY MATERIAL METROPOLITAN AREAS METROPOLITAN REGIONS MULTINATIONAL OPEN ACCESS PERFORMANCE INDICATORS PHYSICAL INFRASTRUCTURE POVERTY REDUCTION PRODUCTION WORKERS PRODUCTIVITY REGIONAL AGGLOMERATION REGIONAL AGGLOMERATION ECONOMIES REGIONAL AVERAGES REGIONAL CHARACTERISTICS REGIONAL DEVELOPMENT REGIONAL DIFFERENCES REGIONAL DIVERGENCE REGIONAL DUMMIES REGIONAL ECONOMICS REGIONAL INDICATORS REGIONAL INTEGRATION REGIONAL INTEGRATION ARRANGEMENTS REGIONAL INVESTMENT REGIONAL INVESTMENT CLIMATE REGIONAL LEVEL REGIONAL LEVELS REGIONAL SCIENCE RESULT RESULTS SMALL FIRMS SOCIAL SERVICES SUPPLIERS TAX ADMINISTRATION TELECOMMUNICATIONS TELEPHONE TELEPHONE CONNECTION TRADE FACILITATION TRADE OUTCOMES TRANSACTION TRANSACTION COSTS TRANSPORT URBANIZATION USES WAGES WATER CONNECTION WEB Using a cross-section of more than 40,000 manufacturing and services firms in 79 developing countries from the World Bank's Enterprise Surveys Database, this paper assesses how firm location determines the likelihood and extent of exporting in developing countries. Descriptive statistics confirm higher export participation (but not intensity) for firms in core versus non-core regions, despite the finding that firms in the core assess many aspects of the investment climate more negatively. 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. Specifically, customs clearance and electricity quality matter for export participation for manufacturing firms. Although localization economies and export spillovers are associated with increased exporting, the opposite is found for urbanization economies for both manufacturing and services firms. The analysis finds that firm-level determinants of exporting matter more for firms located in non-core regions, while regional determinants and agglomeration economies play a larger role in core regions. The findings point to the presence of congestion costs in the core, and suggest that policy interventions to target export participation are likely to have a greater impact if they are focused on core regions over non-core regions, where firm-specific factors predominate. Moreover, the importance of export spillovers and localization economies highlights the potential value of efforts to remove barriers to natural agglomeration both in core and non-core regions, for example through investments in infrastructure, the provision of social services, and regional integration arrangements. 2012-03-19T18:04:22Z 2012-03-19T18:04:22Z 2011-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110829090011 http://hdl.handle.net/10986/3544 English Policy Research working paper ; no. WPS 5780 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ADVERTISING BANKS BUSINESS CLIMATE BUSINESS ENVIRONMENT BUSINESS SERVICES BUYERS CAPABILITIES CAPITAL REGION CENTRAL REGION COMPETITIVENESS COMPETITORS CONSUMER MARKETS CORE REGION CREDIT LINE CUSTOMS CUSTOMS CLEARANCE DATA LIMITATIONS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ELECTRICITY EMERGING MARKETS EMPLOYMENT ENTERPRISE SURVEY ENTERPRISE SURVEYS ENTREPRENEURSHIP EXPORT MARKET EXPORT MARKETS EXTERNALITIES FINANCIAL INSTITUTIONS FIRM SIZE FIRM SIZES FIRMS FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN MARKET FOREIGN MARKETS GLOBAL MARKETS GOVERNMENT CONTRACT GOVERNMENT REGULATION HUMAN CAPITAL INNOVATION INTERNATIONAL MARKETS INTERNATIONAL TRADE INVENTORY LICENSE LICENSES LICENSING LOCALISATION LOCALIZATION MANAGEMENT REVIEWS MANUFACTURERS MANUFACTURING MARKETING MARKETING STRATEGY MATERIAL METROPOLITAN AREAS METROPOLITAN REGIONS MULTINATIONAL OPEN ACCESS PERFORMANCE INDICATORS PHYSICAL INFRASTRUCTURE POVERTY REDUCTION PRODUCTION WORKERS PRODUCTIVITY REGIONAL AGGLOMERATION REGIONAL AGGLOMERATION ECONOMIES REGIONAL AVERAGES REGIONAL CHARACTERISTICS REGIONAL DEVELOPMENT REGIONAL DIFFERENCES REGIONAL DIVERGENCE REGIONAL DUMMIES REGIONAL ECONOMICS REGIONAL INDICATORS REGIONAL INTEGRATION REGIONAL INTEGRATION ARRANGEMENTS REGIONAL INVESTMENT REGIONAL INVESTMENT CLIMATE REGIONAL LEVEL REGIONAL LEVELS REGIONAL SCIENCE RESULT RESULTS SMALL FIRMS SOCIAL SERVICES SUPPLIERS TAX ADMINISTRATION TELECOMMUNICATIONS TELEPHONE TELEPHONE CONNECTION TRADE FACILITATION TRADE OUTCOMES TRANSACTION TRANSACTION COSTS TRANSPORT URBANIZATION USES WAGES WATER CONNECTION WEB |
| spellingShingle |
ACCOUNTING ADVERTISING BANKS BUSINESS CLIMATE BUSINESS ENVIRONMENT BUSINESS SERVICES BUYERS CAPABILITIES CAPITAL REGION CENTRAL REGION COMPETITIVENESS COMPETITORS CONSUMER MARKETS CORE REGION CREDIT LINE CUSTOMS CUSTOMS CLEARANCE DATA LIMITATIONS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ELECTRICITY EMERGING MARKETS EMPLOYMENT ENTERPRISE SURVEY ENTERPRISE SURVEYS ENTREPRENEURSHIP EXPORT MARKET EXPORT MARKETS EXTERNALITIES FINANCIAL INSTITUTIONS FIRM SIZE FIRM SIZES FIRMS FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN MARKET FOREIGN MARKETS GLOBAL MARKETS GOVERNMENT CONTRACT GOVERNMENT REGULATION HUMAN CAPITAL INNOVATION INTERNATIONAL MARKETS INTERNATIONAL TRADE INVENTORY LICENSE LICENSES LICENSING LOCALISATION LOCALIZATION MANAGEMENT REVIEWS MANUFACTURERS MANUFACTURING MARKETING MARKETING STRATEGY MATERIAL METROPOLITAN AREAS METROPOLITAN REGIONS MULTINATIONAL OPEN ACCESS PERFORMANCE INDICATORS PHYSICAL INFRASTRUCTURE POVERTY REDUCTION PRODUCTION WORKERS PRODUCTIVITY REGIONAL AGGLOMERATION REGIONAL AGGLOMERATION ECONOMIES REGIONAL AVERAGES REGIONAL CHARACTERISTICS REGIONAL DEVELOPMENT REGIONAL DIFFERENCES REGIONAL DIVERGENCE REGIONAL DUMMIES REGIONAL ECONOMICS REGIONAL INDICATORS REGIONAL INTEGRATION REGIONAL INTEGRATION ARRANGEMENTS REGIONAL INVESTMENT REGIONAL INVESTMENT CLIMATE REGIONAL LEVEL REGIONAL LEVELS REGIONAL SCIENCE RESULT RESULTS SMALL FIRMS SOCIAL SERVICES SUPPLIERS TAX ADMINISTRATION TELECOMMUNICATIONS TELEPHONE TELEPHONE CONNECTION TRADE FACILITATION TRADE OUTCOMES TRANSACTION TRANSACTION COSTS TRANSPORT URBANIZATION USES WAGES WATER CONNECTION WEB Farole, Thomas Winkler, Deborah Firm Location and the Determinants of Exporting in Developing Countries |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5780 |
| description |
Using a cross-section of more than
40,000 manufacturing and services firms in 79 developing
countries from the World Bank's Enterprise Surveys
Database, this paper assesses how firm location determines
the likelihood and extent of exporting in developing
countries. Descriptive statistics confirm higher export
participation (but not intensity) for firms in core versus
non-core regions, despite the finding that firms in the core
assess many aspects of the investment climate more
negatively. 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. Specifically,
customs clearance and electricity quality matter for export
participation for manufacturing firms. Although localization
economies and export spillovers are associated with
increased exporting, the opposite is found for urbanization
economies for both manufacturing and services firms. The
analysis finds that firm-level determinants of exporting
matter more for firms located in non-core regions, while
regional determinants and agglomeration economies play a
larger role in core regions. The findings point to the
presence of congestion costs in the core, and suggest that
policy interventions to target export participation are
likely to have a greater impact if they are focused on core
regions over non-core regions, where firm-specific factors
predominate. Moreover, the importance of export spillovers
and localization economies highlights the potential value of
efforts to remove barriers to natural agglomeration both in
core and non-core regions, for example through investments
in infrastructure, the provision of social services, and
regional integration arrangements. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Farole, Thomas Winkler, Deborah |
| author_facet |
Farole, Thomas Winkler, Deborah |
| author_sort |
Farole, Thomas |
| title |
Firm Location and the Determinants of Exporting in Developing Countries |
| title_short |
Firm Location and the Determinants of Exporting in Developing Countries |
| title_full |
Firm Location and the Determinants of Exporting in Developing Countries |
| title_fullStr |
Firm Location and the Determinants of Exporting in Developing Countries |
| title_full_unstemmed |
Firm Location and the Determinants of Exporting in Developing Countries |
| title_sort |
firm location and the determinants of exporting in developing countries |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110829090011 http://hdl.handle.net/10986/3544 |
| _version_ |
1764387172688855040 |