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Location, internationalization and performance of firms in Italy: a multilevel approach

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Competition is increasingly global. However, location still matters: often firms cluster in the same geographic areas in order to exploit locational externalities and improve their competitiveness. This article analyses how Italian firms' performance, proxied by their propensity to export, depends both on geographical and institutional context and on individual characteristics. Using a multilevel approach, we estimate and distinguish the effect of individual (firm level) and context (province level) variables on the performance of internationalized Italian firms. We show that both firms and province heterogeneity shape the results.

Keywords: C19; F17; F23; L19; exports; heterogeneity; multilevel model; multinational firms

Document Type: Research Article


Affiliations: 1: Dipartimento Scienze Economiche, Università degli Studi di Firenze, via delle Pandette 9 Firenze 50127, Italy 2: Dipartimento di Economia, Università Europea di Roma, V. degli Aldobrandeschi 190, Roma

Publication date: June 1, 2013

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