Economies of scale in the provision of export services and informal face-to
-face exchanges of information about export markets may improve export perf
ormance of small firms located in Marshallian districts (locales). This pap
er presents an empirical test of this hypothesis and finds that geographica
l agglomeration of small-medium firms in a delimited area significantly aff
ects their export intensity and their probability of becoming exporters. Th
e significance of geographical agglomeration persists in spite of all contr
ols which show how the dependent variable is also (positively) affected by
export subsidies, formal export cooperation among firms, cooperation in (an
d quality of) innovation, size and age.