Papers by Marianne Matthee
International Regional Science Review, 2008
In this paper, the question of the location of exporters of manufactured goods within a country i... more In this paper, the question of the location of exporters of manufactured goods within a country is investigated. Based on insights from new trade theory, the new economic geography (NEG) and gravity-equation modelling, an empirical model is specified with agglomeration and increasing returns (the home market effect) and transport costs (proxied by distance) as major determinants of the location decision
Journal of International Entrepreneurship, 2011
This paper investigates the importance of transport costs in new venture internationalisation, i.... more This paper investigates the importance of transport costs in new venture internationalisation, i.e. of firms that start exporting before they are 3 years of age. It does so by merging two large international datasets, on the firm level (covering 49,584 firms) as well as on the country level (covering 154 countries). It is found that transport costs matter significantly for new venture internationalisation, for older firms’ decision to export, as well as the extent of the latter’s subsequent exports. Export costs, the quality of transport infrastructure and domestic logistics costs affect new venture internationalisation even when controlling for a range of standard determinants. New international ventures behave differently from older firms in two important ways: (1) Transport costs affect the probability that they will export but not the extent of their subsequent exports and (2) their probability of exporting is affected negatively by their networking, domestic success and ISO status, whilst in the case of older firms, these factors have a positive impact. Various recommendations for policy and further research are made.
This paper provides empirical evidence on the relationship between exports, and in particular exp... more This paper provides empirical evidence on the relationship between exports, and in particular export diversity, and regional growth in a developing country context. Using export data for 19 sectors from 354 subnational (magisterial) districts of South Africa, we construct various measures of subnational export diversity. We find that it is not only how much that is exported, but also important is what is exported. Regions with less specialization and more diversified exports generally experienced higher economic growth rates and contributed much more to overall exports from South Africa. We also find that distance (and thus transport costs) may matter for export diversity. Estimating a cubic-spline density function for the various measures of export diversity we find that export diversity declines as the distance from a port (export hub) increases. Most magisterial districts with high export diversity values are located within 100 km of the nearest port. Furthermore, comparing the cubic-spline density functions for 2004 with that of 1996 shows that distance (transport costs) have become more important (under greater openness), with fewer diverse magisterial districts located further away from ports in 2004 than in 1996. One possible explanation for this changing pattern of export diversity may be due to the impact of greater foreign direct investment in South Africa since 1996.
The Maastricht School of Management is a leading provider of management education with worldwide ... more The Maastricht School of Management is a leading provider of management education with worldwide presence. Our mission is to enhance the management capacity of professionals and organizations in and for emerging economies and developing countries with the objective to substantially contribute to the development of these societies.
World Economy, 2010
This paper aims to provide empirical evidence on whether export specialization or diversification... more This paper aims to provide empirical evidence on whether export specialization or diversification is better for local economic growth. Using export data from 354 magisterial districts of South Africa for 1996 and 2001 we estimate spatial growth regressions that include measures of the degree of export specialization and diversification. Overall, exporting regions outperform other (less or non-) exporting regions. Also, we find that export specialisation, rather than export diversification, has been associated with local economic growth; with specialization in mining and agriculture being especially beneficial. Our results support the view that specialization in a locality’s area of comparative advantage is good for local economic development. We also find that localities with higher initial levels of human capital, and higher subsequent population growth, performed better. This is consistent with the belief that policies aimed at strengthening human capital and improving agglomeration economies, will enhance local economic development.
This paper provides empirical evidence on the relationship between exports, and in particular exp... more This paper provides empirical evidence on the relationship between exports, and in particular export diversity, and spatial inequality in a developing country context. Using export data from19 sectors within 354 sub-national (magisterial) districts of South Africa, various measures of sub- national export diversity are constructed. It is found that it is not only important how much is exported, but that
African Development Review-revue Africaine De Developpement, 2010
Abstract:  The costs of accessing and using a port/export hub should be high on the list of prior... more Abstract:  The costs of accessing and using a port/export hub should be high on the list of priorities for export promotion agencies in Africa. This conclusion emanates from this paper focusing on the geographical location of manufacturing export industries in South Africa. Here manufacturing export firms tend to be spatially concentrated with about 84 per cent of total manufacturing exports produced in only 6 per cent of magisterial districts. Distance from an export hub is negatively related to the density of manufactured exports. The largest volumes of manufactured exports are generated within 100 km of an export hub. For electronics, about 98 per cent of manufacturing takes place within 100 km of an export hub. Comparison over time showed that the number of locations from which manufacturing exports occur increased by 15 per cent over 1996–2004 and that manufacturing exports increased in the band between 200 and 400 km from the nearest hub.
ABSTRACT The international floriculture industry has been developing since the 1970s. The continu... more ABSTRACT The international floriculture industry has been developing since the 1970s. The continuous emergence of producers from around the globe has made trading in this market very competitive. This, along with the fact that base of competition is constantly changing, makes it important to evaluate South Africa's floriculture industry's competitive position. Currently this industry employs more than 17 500 people and provides significant opportunities for rural employment. The aim of this paper is to assess the challenges, which the South African floriculture industry is facing in the competitive global market using the GCC and GVC framework. Based on an empirical study conducted, it was found that the industry does not participate to its full potential in the global market and that it lacks competitiveness in terms of various aspects. It is recommended that participants in the industry shift their focus from the domestic to the international market. This is essential as the domestic market's turnover is small and is slowly becoming saturated. However, as enhancing the industry's competitiveness is a complex endeavour, the industry first needs to address the weaknesses identified in order to ultimately become more integrated into the global market.
In this paper, the question of the location of exporters of manufactured goods within a country i... more In this paper, the question of the location of exporters of manufactured goods within a country is investigated. Based on insights from new trade theory, the new economic geography (NEG) and gravity-equation modelling, an empirical model is specified with agglomeration and increasing returns (the home market effect) and transport costs (proxied by distance) as major determinants of the location decision
This paper provides empirical evidence on the location of export-oriented manufacturing firms in ... more This paper provides empirical evidence on the location of export-oriented manufacturing firms in Africa (South Africa), and on how the patterns of location has changed over the past decade after the country embarked on trade liberalization. It is found that (a) the proximity to a port is an important consideration in most exportoriented manufacturing firms' location, with more than 70 per cent of manufacturing exports in South Africa originating from a band of 100 km from a port; and (b) there is a second band of location of these firms at a distance of between 200 and 400 km from the port. Between 1996 and 2004, manufactured exports in the band between 200 and 400 km from the nearest port increased. Various possible explanations for this dispersion of export location are discussed. These include (a) changes in international and domestic transport costs; (b) an increase in manufactured exports that depend on natural resources due to demand factors; and/or (c) inflation in land-rents or wage rates in the vicinity of hubs; and/or (d) the increasing productivity of export plants due to scale effects.
Success in international trade depends, amongst other things, on distance from markets. Most new ... more Success in international trade depends, amongst other things, on distance from markets. Most new economic geography models focus on the distance between countries. In contrast much less theorizing and empirical analysis have focused on how distances within a country-for instance due to the location behaviour of exporting firms-matter to international trade. In this paper we contribute to the literature on the latter by offering a theoretical model to explain the optimal distance that an export-oriented firm would locate from a port. We present empirical evidence from South Africa in support of the model.
Journal of Regional Science, 2009
ABSTRACT Success in international trade depends, among other things, on distance from markets. Mo... more ABSTRACT Success in international trade depends, among other things, on distance from markets. Most new economic geography models focus on the distance between countries. In contrast, much less theorizing and empirical analysis have focused on how distances within a country—for instance, due to the location behavior of exporting firms—matter to international trade. In this paper, we contribute to the literature on the latter by offering a theoretical model to explain the optimal distance that an export-oriented firm would locate from a port. We present empirical evidence in support of the model.
What is the impact of export costs on the speed and extent to which African firms exports? We ans... more What is the impact of export costs on the speed and extent to which African firms exports? We answer this question using a sample of 49,584 (mostly formal) firms across 71 countries, including 5,839 firms in 16 African countries surveyed by the World Bank during 2002 and 2003. We find that firms in African countries face higher export costs on average than firms in other parts of the world. However we find that African firms are more likely to enter export markets, but that when they do the extent of their exports (exports as a share of their total sales) is on average less than that of firms elsewhere. Also, younger firms are more likely to start exporting than older firms. As for the impact on export costs, we establish that the costs of exporting (as measured in US dollars) lower the likelihood and the extent of African firms' exports but not when African firms start exporting.
Development Southern Africa, 2009
Recent research has identified what determines local exports and what policies might make them gr... more Recent research has identified what determines local exports and what policies might make them grow. Regions with higher Gross Domestic Product per capita, faster population growth, higher levels of skills, greater export diversification and shorter distances to ports ...
The purpose of this paper is to construct an export potential index of South Africa's tow... more The purpose of this paper is to construct an export potential index of South Africa's towns and cities. The results of the 1996 export potential index show a positive relationship between export potential and manufactured exports - exports from the top 50 ranked locations contributed 88.2 per cent of total manufactured exports in 1996. However, not all cities and towns
Development Southern Africa, 2006
... based on global value chain (GVC) and global commodity chain (GCC) analyses. ... internationa... more ... based on global value chain (GVC) and global commodity chain (GCC) analyses. ... international trade in these products was that demand exceeded supply in the global ... 1Respectively, Lecturer, School of Economics, Risk Management and International Trade; Director, Workwell ...
In this paper, we attempt to provide empirical evidence on the significance of domestic transport... more In this paper, we attempt to provide empirical evidence on the significance of domestic transport costs in exports and the spatial location of manufacturing exporters. We use spatially disaggregated data on exports and manufacturing from South Africa and estimate modified cubic-spline density functions for manufactured exports from 354 magisterial districts between 1996 and 2004. It is found that (a) the
In recent years, transport costs have been recognised as having important and significant impacts... more In recent years, transport costs have been recognised as having important and significant impacts on trade patterns and globalised production. Both international and domestic transport costs have been empirically found to affect trade negatively. The effect of transport costs on trade is exacerbated by distance, not only from import markets but also from a port. South Africa's position in terms
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Papers by Marianne Matthee