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An Explanation of Firms' Internationalisation Modes, Blending Firm Heterogeneity and Spatial Agglomeration

Microevidence from Italy

Bibliographic Data

ID4970844
AuthorsGiulio Cainelli (0000-0003-0902-1847, Department of Economics and Management “M. Fanno”, University of Padova and CERIS-CNR, Via del Santo, 33, 35123 Padova, Italy, corresponding author), Eleonora Di Maria (0000-0003-4595-2155, Department of Economics and Management “M. Fanno”, University of Padova and CERIS-CNR, Via del Santo, 33, 35123 Padova, Italy, corresponding author), Roberto Ganau (0000-0002-6682-7508, Department of Economics and Management “M. Fanno”, University of Padova and CERIS-CNR, Via del Santo, 33, 35123 Padova, Italy, corresponding author)
Year2014
Volume46
Issue4
Pages943-962
Publication date2014-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEnvironment and Planning A Economy and Space (JOURNAL)
Journal identifiersISSN: 0308-518X • E-ISSN: 1472-3409
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1068/a4690
OpenAlexW2051713554
LanguageEN
Citations received4
References cited36

This paper uses a large sample of Italian manufacturing firms over the period 2004-06, to investigate whether different types of agglomeration economies affect firms' internationalisation choices. The main novelty of the work consists in linking the hypothesis of firm heterogeneity to the literature on agglomeration economies to explain firms' approaches and forms of internationalisation. We analyse two types of agglomeration economies: localisation economies and related variety. Our analyses show that the higher the firm's productivity level, the higher the probability it will engage in more complex modes of internationalisation and that localisation economies and related variety positively affect export but not the firm's multinational strategy. We check the robustness of our results using a two-stage instrumental-variable multinomial logit model in order to control for potential endogeneity of agglomeration variables

Business · Econometrics · Economic geography · Economics · Economies of agglomeration · Endogeneity · Industrial organization · Instrumental variable · Internationalization · Macroeconomics · Microeconomics · Multinational corporation · Multinomial logistic regression · Productivity · Statistics · Global trade and economics · Italy: Economic History and Contemporary Issues · Regional Economics and Spatial Analysis

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Unique citing works4
Citations per year0,44
Citation span2017 - 2024 (8)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 4

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