Geography and the Determinants of Firm Exports in Indonesia

35 Pages Posted: 12 Feb 2013

See all articles by Thomas Farole

Thomas Farole

World Bank

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Vassilis Tselios

London School of Economics & Political Science (LSE) - Department of Economics; Newcastle University - Centre for Urban and Regional Development Studies

Deborah E. Winkler

World Bank

Date Written: February 2013

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.

Keywords: Asia, Export intensity, Export propensity, Geography, Indonesia, Macro-factors, Micro-factors

JEL Classification: F1, F2, R1

Suggested Citation

Farole, Thomas and Rodríguez-Pose, Andrés and Tselios, Vassilis and Winkler, Deborah E., Geography and the Determinants of Firm Exports in Indonesia (February 2013). CEPR Discussion Paper No. DP9342. Available at SSRN: https://ssrn.com/abstract=2215461

Thomas Farole (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Vassilis Tselios

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Newcastle University - Centre for Urban and Regional Development Studies

Newcastle NE1 7RU
United Kingdom

Deborah E. Winkler

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
1
Abstract Views
316
PlumX Metrics