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Explaining Regional Export Performance in a Developing Country: The Role of Geography and Relative Factor Endowments

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Naude, Wim; Gries, Thomas

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Abstract In this paper we investigate the role of geography in explaining trade. We estimate and contrast two models, a so-called “Skills-to-Land Heckscher Ohlin Model” following Wood and Berge (1997) and a “Geography Hecksher-Ohlin-Von Thünen model” following Redding and Venables (2004). Using panel data across 354 South African magisterial districts from 1996 to 2000 we find that the geography model offers an overall better explanation. Regions that are larger in terms of economic size, with good foreign market access and know-how of foreign markets, with competitive transport costs, good local institutions and higher proportions of skilled workers, will be more successful in exporting manufactured goods.
Classification Sociology of Developing Countries, Developmental Sociology; Economic and Social Geography; Area Development Planning, Regional Research
Document language English
Publication Year 2009
Page/Pages p. 967-979
Journal Regional Studies, 43 (2009) 7
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)