Overseas business costs and firm export performance

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Overseas business costs and firm export performance

Author Info

Richard Kneller
Mauro Pisu
Zhihong Yu

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Abstract

The recent microeconomic literature on international trade has highlighted the importance of firm characteristics and trade costs for exports. This study provides evidence on one type of those costs, the costs of doing business overseas, from a theoretical and empirical perspective. Controlling for firm- and industry-level covariates, we find that improvements in the business environment of foreign countries lead to an increase in the export intensity of exporters in the UK manufacturing sector and additional export market entry. Further investigation suggests that important determinants of foreign business costs include factors relating to legal structure, property rights, and business regulation.

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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 41 (2008)
Issue (Month): 2 (May)
Pages: 639-669
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Handle: RePEc:cje:issued:v:41:y:2008:i:2:p:639-669

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Related research
Keywords:

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

Cited by:
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Gianmarco I.P. Ottaviano & Christian Volpe Martincus, 2009. "SMEs in Argentina: Who are the Exporters," Working Papers 2009.88, Fondazione Eni Enrico Mattei. [Downloadable!]
Other versions:
- Gianmarco I. P. Ottaviano & Christian Volpe Martincus, 2009. "SMEs in Argentina: Who are the Exporters?," Development Working Papers 283, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]

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This page was last updated on 2009-12-21.

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