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Participation of fast-growing SMEs in international trade and implications for public policy

Author

Listed:
  • Kuzyk, M.

    (National Research University Higher School of Economics, Moscow, Russia)

  • Simachev, Yu.

    (National Research University Higher School of Economics, Moscow, Russia)

  • Fedyunina, A.

    (National Research University Higher School of Economics, Moscow, Russia)

Abstract

This study explores participation of Russian fast-growing small and medium-sized enterprises (SMEs) in international trade and delivers the evidence of the effects of public policy support on growth and export activity. We show that small and medium sized enterprises that can be attributed to fast-growing firms, have higher export activity, but higher growth rates for them are dominated by growth of domestic sales. Regarding market orientation of Russian firms, we find that fast-growing SMEs are more oriented towards non-CIS markets (primarily, Asian) in comparison to other exporting SMEs. We explore the effects of sanctions and find that fast-growing firms more often entered new country markets than other SMEs. We show that SMEs and fast-growing firms working on foreign markets more intensively use digital technologies. Fast-growing SMEs demonstrate lower dependence on technology imports and higher interest in developing and introducing technologies. We explore public policy support for SMEs and find that government support measures are poorly targeted at small companies in comparison to large business and contribute little to firms' growth and increase of their export activity.

Suggested Citation

  • Kuzyk, M. & Simachev, Yu. & Fedyunina, A., 2020. "Participation of fast-growing SMEs in international trade and implications for public policy," Journal of the New Economic Association, New Economic Association, vol. 45(1), pages 208-218.
    • Handle: RePEc:nea:journl:y:2020:i:45:p:208-218
    DOI: 10.31737/2221-2264-2020-45-1-11
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    References listed on IDEAS

    as
    1. Yudanov, A., 2010. "Embodiments of Entrepreneurial Spirit: «Gazelle-Firms» in Russia," Journal of the New Economic Association, New Economic Association, issue 5, pages 92-109.
    2. Simachev, Y. & Kuzyk, M. & Zudin, N., 2017. "The Impact of Public Funding and Tax Incentives on Russian Firms: Additionality Effects Evaluation," Journal of the New Economic Association, New Economic Association, vol. 34(2), pages 59-93.
    3. Whitney K. Newey, 2009. "Treatment effects (in Russian)," Quantile, Quantile, issue 6, pages 15-23, March.
    4. Etienne St-Jean & Pierre-André Julien & Josée Audet, 2008. "Factors Associated With Growth Changes In "Gazelles"," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 161-188.
    5. Daniela Livia Trașcă & George Marian Ștefan & Daniela Nicoleta Sahlian & Răzvan Hoinaru & George-Laurențiu Șerban-Oprescu, 2019. "Digitalization and Business Activity. The Struggle to Catch Up in CEE Countries," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    6. Alex Coad & Sven-Olov Daunfeldt & Werner Hölzl & Dan Johansson & Paul Nightingale, 2014. "High-growth firms: introduction to the special section," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(1), pages 91-112, February.
    7. David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, vol. 117(517), pages 134-161, February.
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    Citations

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    Cited by:

    1. Alexander Kalita & Alexander Chepurenko, 2020. "Competitiveness of Small and Medium Businesses and Competitive Pressure in the Manufacturing Industry," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 14(2), pages 36-50.

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    More about this item

    Keywords

    small and medium-sized enterprises; fast-growing firms; export; global value chains; import dependence; sanctions; counter-sanctions; digital technologies; labor productivity; state support for industrial enterprises;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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