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Discussion Paper Details

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Title: Geography and the Determinants of Firm Exports in Indonesia

Author(s): Thomas Farole, Andrés Rodríguez-Pose, Vassilis Tselios and Deborah Winkler

Publication Date: February 2013

Keyword(s): Asia, Export intensity, Export propensity, Geography, Indonesia, Macro-factors and Micro-factors

Programme Area(s): International Trade and Regional Economics

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.

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Bibliographic Reference

Farole, T, Rodríguez-Pose, A, Tselios, V and Winkler, D. 2013. 'Geography and the Determinants of Firm Exports in Indonesia'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9342