Working Paper: CEPR ID: DP9342
Authors: Andrés Rodríguez-Pose; Vassilis Tselios; Deborah Winkler; Thomas Farole
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; Macrofactors; Microfactors
JEL Codes: F1; F2; R1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Foreign ownership (F23) | Export propensity (C25) |
| Capital intensity (E22) | Export propensity (C25) |
| Total factor productivity (O49) | Export propensity (C25) |
| Age (J14) | Export propensity (C25) |
| Proximity to the coast (R12) | Export propensity (C25) |
| Agglomeration effects (R11) | Export propensity (C25) |
| Educational level (I21) | Export propensity (C25) |
| Infrastructure (road density, electricity access) (R42) | Export propensity (C25) |
| Regional education (I23) | Export propensity (C25) |
| Higher education levels in neighboring regions (I23) | Export propensity (C25) |
| Capital intensity (E22) | Export intensity (Y10) |
| Productivity (O49) | Export intensity (Y10) |