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Local municipalities’ involvement in promoting the internationalisation of SMEs

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  • Aurora Castro Teixeira
  • Maria João Barros

Abstract

Despite extensive research on decentralisation, the role of local governments in promoting the internationalisation of firms has been rather neglected in the literature. Based on a sample of 144 Portuguese municipalities, and resorting to logistic econometric estimations, we found that: (1) the majority of municipalities have been involved in activities to promote economic development and the internationalisation of firms; (2) municipalities are essentially involved in the branding of regions (image building) or in organising fairs and trade missions and (3) municipalities more active in promoting the internationalisation of small and medium-sized enterprises (SMEs) tend to be more peripheral, with a relatively high area and population density, higher purchasing power, higher proportion of population with secondary schooling, lower density entrepreneurial context but with higher amounts of exports. Although there is still a long way to go for a more profound and comprehensive decentralisation at this level in Portugal, given the knowledge municipalities possess about the firms that are located in their vicinity, we contend that it would be desirable that more decentralised efforts be put towards the implementation of information, and education/training-related programmes aiming at promoting SMEs internationalisation.

Suggested Citation

  • Aurora Castro Teixeira & Maria João Barros, 2014. "Local municipalities’ involvement in promoting the internationalisation of SMEs," Local Economy, London South Bank University, vol. 29(1-2), pages 141-162, February.
    • Handle: RePEc:sae:loceco:v:29:y:2014:i:1-2:p:141-162
    DOI: 10.1177/0269094214522115
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