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Overseas business costs and firm export performance

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Author Info

  • Richard Kneller
  • Mauro Pisu
  • Zhihong Yu

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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Bibliographic 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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Cited by:
  1. Fakih, Ali & Ghazalian, Pascal L., 2013. "Why Some Firms Export? An Empirical Analysis for Manufacturing Firms in the MENA Region," IZA Discussion Papers 7172, Institute for the Study of Labor (IZA).
  2. Joseph LiPuma & Scott Newbert & Jonathan Doh, 2013. "The effect of institutional quality on firm export performance in emerging economies: a contingency model of firm age and size," Small Business Economics, Springer, vol. 40(4), pages 817-841, May.
  3. David Greenaway & Richard Kneller & Xufei Zhang, 2012. "The effect of exchange rates on firm exports and the role of FDI," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 148(3), pages 425-447, September.
  4. Osiris Jorge Parcero & Emiliano Villanueva, 2011. "World Wine Exports: What Determined the Success of the ‘New World’ Wine Producers?," CRIEFF Discussion Papers 1103, Centre for Research into Industry, Enterprise, Finance and the Firm.
  5. Lejour, Arjan & Rojas Romasgosa, Hugo & Rodriguez, Victor & Montalvo, Carvos & Van der Zee, Frans, 2009. "Trade costs, Openness and Productivity: Market Access at Home and Abroad," MPRA Paper 21214, University Library of Munich, Germany.
  6. 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.
  7. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Export Promotion: Heterogeneous Programs and Heterogeneous Effects," IDB Publications 36759, Inter-American Development Bank.
  8. Richard Upward & Zheng Wang & Jinghai Zheng, . "Weighing China's Export Basket: An Account of the Chinese Export Boom, 2000--2007," Discussion Papers 10/14, University of Nottingham, GEP.
  9. Francesco Serti & Chiara Tomasi, 2009. "Self-selection along different export and import markets," LEM Papers Series 2009/18, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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