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Geography and exporting behavior : evidence from India

Author:	Mukim, Megha;	Collection Title:	Policy Research working paper ; no. WPS 5979
Country:	World;	Date Stored:	2012/02/28
Document Date:	2012/02/01	Document Type:	Policy Research Working Paper
Language:	English	Rel. Proj ID:	1W-Trade And Subnational Competitiveness -- -- P120220;
Region:	The World Region	Report Number:	WPS5979
SubTopics:	Transport Economics Policy & Planning; Water and Industry; Economic Theory & Research; Microfinance; E-Business	Volume No:	1 of 1

Summary: 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.


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