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Geography and exporting behavior : evidence from India, Volume 1
Author:Mukim, Megha; Country:World;
Date Stored:2012/02/28Document Date:2012/02/01
Document Type:Policy Research Working PaperSubTopics:Microfinance; Transport Economics Policy & Planning; Water and Industry; Economic Theory & Research; E-Business
Language:EnglishRel. Proj ID:1W-Trade And Subnational Competitiveness -- -- P120220;
Region:The World RegionReport Number:WPS5979
Collection Title:Policy Research working paper ; no. WPS 5979Volume No: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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