This work studies the micro determinant of aggregate exports growth in Italy between 2000 and 2015 and characteristics affecting the probability that an already-exporting firm enters a new destination market.
During the period 2001-2015, the intensive margin (i.e. exports of products already sold to markets already served) and, to a lesser extent, net market entry (i.e. accessing new export markets with products already sold in other export markets) have been the main drivers of export growth. Firm-destination specific dimensions, such as the distance between the new market and the closest market already served by the firm and the contiguity between the two, play an important role in explaining the decision to enter new destination markets.
