Determinants of Exports: Firm Heterogeneity and Local Context

52 Pages Posted: 2 Feb 2017

See all articles by Pietro de Matteis

Pietro de Matteis

Bank of Italy

Filomena Pietrovito

University of Molise

Alberto F. Pozzolo

Università degli Studi di Roma Tre

Date Written: September 22, 2016

Abstract

It is frequently argued that the geographical context in which firms operate can have a crucial impact on their propensity to internationalize. In this paper, we present the results of an empirical analysis that examines the determinants of export performance for a sample including more than 4,300 Italian manufacturing firms over the period 2000-2013, focusing on the role of provincial context, after controlling for firm-level characteristics. To this end, we first adopt a cluster analysis methodology to classify each Italian province in terms of context variables, such as: the distance to foreign markets, the level of human and social capital and the degree of efficiency of the public administration. Second, we estimate a set of binomial choice and linear models to assess the impact of the economic and social environment on the extensive and intensive margins of trade. The results, after confirming that firm-specific factors (size, experience, productivity, capital intensity, innovation, geographical agglomeration and, to some extent, credit constraints) affect both the intensive and the extensive margins of exports, show that context characteristics at the province level have an additional (statistically and economically) significant impact on the export performances of firms.

Keywords: firm internationalization, local context, firm heterogeneity

JEL Classification: D22, F10, F14, F18

Suggested Citation

de Matteis, Pietro and Pietrovito, Filomena and Pozzolo, Alberto F., Determinants of Exports: Firm Heterogeneity and Local Context (September 22, 2016). Bank of Italy Occasional Paper No. 352, Available at SSRN: https://ssrn.com/abstract=2910346 or http://dx.doi.org/10.2139/ssrn.2910346

Pietro De Matteis (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Filomena Pietrovito

University of Molise ( email )

Via F. de Sanctis s.n.c.
Campobasso, Campobasso (CB) 86100
Italy

Alberto F. Pozzolo

Università degli Studi di Roma Tre ( email )

Via Ostiense 163
Roma, RM 00154
Italy

HOME PAGE: http://www.uniroma3.it/

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