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The Annals of Regional Science

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14-05-2022 | Special Issue Paper

The width and depth of local exports: spatial and cross-sectoral effects on firm entry, survival and growth

Authors: Nebojša Stojčić, Perica Vojinić

Published in: The Annals of Regional Science | Issue 3/2023

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Abstract

Entrepreneurship is a localised process that relies on local institutions, resources, and networks. Interactions between agents in the space may have their origins in the domestic milieu, but they may also draw their roots from international economic linkages. Yet, there is a surprising lack of research that combines economic geography, international trade, and entrepreneurship literature to address these issues at the local level. Our study fills this gap by examining the effects of manufacturing export diversification (extensive margin) and specialisation (intensive margin) on firm entry, survival, and growth within and across cities and towns. Spatial econometric techniques are applied to firm population data from a small and open economy over the period 2007–2017. Extensive margin is identified as the main channel of influence on local entrepreneurial outcomes in manufacturing, but the impact on firm survival and growth in other localities is negative. Manufacturing export margins also impact entrepreneurial outcomes in other sectors of the local economy.

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Available only for authorised users

We have access to data covering 2004–2017 period. First three years had to be excluded from analysis through construction of several dependent variables as it will be shown later in the paper.

Estimations were undertaken also for subperiods from 2007 to 2013 and from 2014 to 2017 to assess sensitivity of model on economic crises. Key variables and most other results retain their signs and significance but the magnitude of coefficients changes to some extent. Printouts available on request.

Sensitivity of model to inclusion of additional control variables was performed with inclusion of Herfindahl Hirschman index of market concentration. Results in Tables A3.1 and A3.2 of Online appendix reveal that all results retain their signs and significance while the magnitude of coefficients changes only marginally.

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Title: The width and depth of local exports: spatial and cross-sectoral effects on firm entry, survival and growth
Authors: Nebojša Stojčić
Perica Vojinić
Publication date: 14-05-2022
Publisher: Springer Berlin Heidelberg
Published in: The Annals of Regional Science / Issue 3/2023
Print ISSN: 0570-1864
Electronic ISSN: 1432-0592
DOI: https://doi.org/10.1007/s00168-022-01136-8

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