Advanced Search
MyIDEAS: Login to save this paper or follow this series

Barriers to Internationalisation: Firm-Level Evidence from South Africa

Contents:

Author Info

  • Marianne Matthee

    (School of Economics, North-West University, Potchefstroom, South Africa)

  • Waldo Krugell

    (School of Economics, North-West University, Potchefstroom, South Africa)

Abstract

The internal resource barriers that firms experience influence their capability to export. This in turn influences the export performance of the country and the extent to which exports contribute to economic growth. The aim of this paper is to analyse the impact of resource barriers, more specifically firm size, productivity, firm-specific capital and labour market constraints, on South African firms' decision to internationalise. The literature on South African exporting firms presents some interesting glimpses of the exporting behaviour of firms in South Africa. However, these were cross-sectional studies focusing on earlier NES data and the 2003 ICA data. This paper tries to provide another dimension in terms of data, by taking the 2007 ICA data into account and by constructing a unique panel from the World Bank Enterprise Survey data for 2003 and 2007. Using panel data allows for better understanding of South African firms in that it enables one to consider the dynamic nature of firms over time. Also, the earlier South African contributions examined the export behaviour of South African firms, but did not control for unobserved heterogeneity. This paper takes the analysis a step further by estimating a panel data two-step Heckman selection model of the predictors of firms’ export propensities and intensities. From the overall results of the model, it is clear that the unobserved factors that make export more likely tend to be associated with lower levels of exports. The main findings are that firm size, productivity and finance matter for exports. Also, barriers to doing business, such as electricity, customs delays and transportation and the use of imported inputs influence exporting firms’ supply-side capabilities.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2011-09.pdf
File Function: First version, 2011
Download Restriction: no

Bibliographic Info

Paper provided by Maastricht School of Management in its series Working Papers with number 2011/09.

as in new window
Length: 30 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:msm:wpaper:2011/09

Contact details of provider:
Postal: P.O. Box 1203, 6201 BE Maastricht
Phone: +31 43 387 08 08
Fax: +31 43 387 08 00
Email:
Web page: http://research.msm.nl
More information through EDIRC

Related research

Keywords:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. V. Gimede, 2004. "Export Propensities and Intensities of Small and Medium Manufacturing Enterprises in South Africa," Small Business Economics, Springer, vol. 22(5), pages 379-389, 06.
  2. Neil Rankin, 2006. "The Regulatory Environment and SMMEs. Evidence from South African Firm Level Data," Working Papers 06113, University of Cape Town, Development Policy Research Unit.
  3. Morgan, Robert E. & Katsikeas, Constantine S., 1997. "Obstacles to export initiation and expansion," Omega, Elsevier, vol. 25(6), pages 677-690, December.
  4. Lionel Nesta & Flora Bellone & Patrick Musso & Stefano Schiavo, 2008. "Financial Constraints and Firm Export Behavior," Sciences Po publications 16, 2008, Sciences Po.
  5. Rankin, Neil A., 2001. "The export behaviour of South African manufacturing firms," MPRA Paper 16904, University Library of Munich, Germany.
  6. Korth, Christopher M., 1991. "Managerial barriers to U.S. exports," Business Horizons, Elsevier, vol. 34(2), pages 18-26.
  7. Edwards, Lawrence & Rankin, Neil A. & Schöer, Volker, 2008. "South African exporting firms: What do we know and what should we know?," MPRA Paper 16906, University Library of Munich, Germany.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:msm:wpaper:2011/09. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maud de By).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.