Italian Firms’ Interregional Trade Decisions

In this study we analyse Italian firms’ behaviour in terms of interregional trade activities during the period 2007-2013. In particular, our aim is to detect similarities and differences in interregional trade strategies with respect to international trade ones. Our analysis is carried out within the framework of probability panel models and makes use of a very rich micro-level dataset. Main results, while confirming the relevant role played by firms’ productivity and size, provide new evidence on the relevance of learning processes in enhancing the probability of entering interregional markets. Our findings also show that the determinants of the firms’ propensity to engage in interregional trade exhibit heterogeneous effects across the macro-regions of the country.