Abstract
This paper investigates the effects of agglomeration on manufacturing firms' export mode decision-making. A detailed firm-level dataset combines the manufacturing and product-level transaction trade data from China. We use a dynamic multinomial logit model with random effects to analyze the effects of agglomeration on the transition probabilities of firms' exporting mode. The results indicate that the agglomeration of direct exporters positively affect firm's choice of exporting directly, and further indicate that the agglomeration effect is identified through productivity spillover. Moreover, these effects are not destination-specific, but are industry-specific.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: The Journal of International Trade & Economic Development
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
