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Institutions and Export Performance in 26 Transition Economies

In: Entrepreneurship in Transition Economies

Author

Listed:
  • Besnik A. Krasniqi

    (University of Prishtina ‘Hasan Prishtina’)

  • Sameeksha Desai

    (Indiana University, School of Public and Environmental Affairs)

Abstract

This chapter examines the influence of institutional conditions—formal and informal—as well as firm age, firm size, and other characteristics on country-level export performance in 26 transition economies. A two-step empirical strategy first identifies clusters of explanatory variables and, second, applies GLS panel estimations to test for the influence of explanatory and control variables on export performance. Results show that quality of formal institutions does not directly influence export performance, but that problematic informal institutions actually improve export performance. This could be because unfavorable home country conditions could motivate firms to seek outside markets. Surprisingly, findings also show average firm size does not explain export performance. Finally, overall younger firm age is found to improve exports but to a threshold, after which export performance suffers as average firm age rises.

Suggested Citation

  • Besnik A. Krasniqi & Sameeksha Desai, 2017. "Institutions and Export Performance in 26 Transition Economies," Societies and Political Orders in Transition, in: Arnis Sauka & Alexander Chepurenko (ed.), Entrepreneurship in Transition Economies, pages 57-73, Springer.
  • Handle: RePEc:spr:socchp:978-3-319-57342-7_4
    DOI: 10.1007/978-3-319-57342-7_4
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    Citations

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    Cited by:

    1. Filomena Pietrovito & Alberto Franco Pozzolo, 2021. "Credit constraints and exports of SMEs in emerging and developing countries," Small Business Economics, Springer, vol. 56(1), pages 311-332, January.
    2. Qi, Guoyou & Zou, Hailiang & Xie, Xuemei & Meng, Xiaohua & Fan, Tijun & Cao, Yuanhe, 2020. "Obedience or escape: Examining the contingency influences of corruption on firm exports," Journal of Business Research, Elsevier, vol. 106(C), pages 261-272.
    3. Phan, Trang Hoai & Stachuletz, Rainer & Nguyen, Hai Thi Hong, 2022. "Export Decision and Credit Constraints under Institution Obstacles," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 132783, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    4. Trang Hoai Phan & Rainer Stachuletz & Hai Thi Hong Nguyen, 2022. "Export Decision and Credit Constraints under Institution Obstacles," Sustainability, MDPI, vol. 14(9), pages 1-27, May.
    5. Pınar ÇUHADAR & Ömer DORU, 2020. "Institutions and International Trade Linkages: An Investigation with Panel Data Analysis on Transition Economies Abstract: The purpose of the paper is to analyze the impact of governance indicator as ," Sosyoekonomi Journal, Sosyoekonomi Society, issue 28(45).

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