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Information Spillovers and the Choice of Export Destination: A Multinomial Logit Analysis of Spanish Young SMEs

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Abstract

Does having more firms around exporting to a particular destination improve the chances of exporting to that destination (e.g. through information spillovers)? We answer this question implementing a multinomial logit model of whether a firm exports to a particular country. To identify the source of information spillovers, we construct indicators of geographical concentration of exporters selling to a specific destination: within industry, multinationals and across industries. In our application with data for Spanish new small sized firms, only within-industry agglomeration of exporting domestic firms significantly affects the probability of small sized firms exporting to the same destination. The significance of localisation economies is robust to a barrage of controls including destination specific characteristics, gravitational factors (distance and level of development), firm heterogeneity (size) and regional differences.

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Authors and Affiliations

  1. Departmento de Economía Aplicada II (Estructura Económica), Facultad de Ciencias Económicas y Empresariales, Av.de los Naranjos s/n, Edificio Departamental Oriental, University of Valencia, 46022, Valencia, Spain

    Francisco Requena Silvente & Juana Castillo Giménez

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  1. Francisco Requena Silvente
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  2. Juana Castillo Giménez
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Correspondence to Francisco Requena Silvente.

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Silvente, F.R., Giménez, J.C. Information Spillovers and the Choice of Export Destination: A Multinomial Logit Analysis of Spanish Young SMEs. Small Bus Econ 28, 69–86 (2007). https://doi.org/10.1007/s11187-005-7324-3

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  • DOI: https://doi.org/10.1007/s11187-005-7324-3

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