The Importance of Firm Location for Exports Activity – Literature Review
The Importance of Firm Location for Exports Activity – Literature Review

Summary/Abstract: The leading authors of the “new” new trade theory literature point out that globally, export potential is highly concentrated among few, biggest firms [Mayer, Ottaviano 2008]. Exporting firms are more competitive and productive and they provide more employment than non-exporting companies. They also generate more profit in comparison and boost the economic growth significantly. Therefore a question is often asked whether it is possible to advance the growth of export by successfully encouraging companies to enter foreign markets. The firm level determinants of export activity should be identified beforehand in order to indicate which firms are potential exporters. It would provide a valuable insight for trade policy and export support programs allowing to sustain the desired level of exports. In the recent years a great deal of attention has been dedicated to geography in regard to spatial distribution of firms activity. The resurgence of interest in spatial aspects of international trade led to combining firm-level determinants with the characteristics of the host location of exporters.

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