Geography and Exporting Behavior: Evidence from India

29 Pages Posted: 20 Apr 2016

Multiple version iconThere are 2 versions of this paper

Date Written: February 1, 2012

Abstract

This paper examines locational factors that increase the odds of a firm's entry into export markets and affect the intensity of its participation. It differentiates between two different sources of spillovers: clustering of general economic activity and that of export-oriented activity. It also focuses on the effect of the business environment and that of institutions at the spatial unit of districts in India. The study disentangles the within-industry effect from the within-firm effect. A simple logit specification is used to model the probability of entry. The analysis is based on a panel of manufacturing firms in India, which allows for the introduction of firm-specific controls and a battery of fixed effects. The findings suggest that exporter-specific clustering, general economic agglomeration, and institutional factors affect firms' export behavior.

Keywords: Microfinance, Transport Economics Policy & Planning, Water and Industry, Economic Theory & Research, E-Business

Suggested Citation

Mukim, Megha, Geography and Exporting Behavior: Evidence from India (February 1, 2012). World Bank Policy Research Working Paper No. 5979, Available at SSRN: https://ssrn.com/abstract=2013013

Megha Mukim (Contact Author)

World Bank ( email )

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