Transport infrastructure investment reduces the cost of distance and enables firms to establish contacts over larger distances. We study the impact of transport-cost reductions on firms’ export behaviour, accounting for the role of entry costs and other firms’ characteristics. Using Spanish...

This paper uses municipality-level data to study firm birth in Portugal from 1986 to 1997. This is a period of significant improvements to the Portuguese motorway network raising important questions as to its impact on the spatial pattern of firm birth. The paper focuses on the effect of such...