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International entrepreneurship and technological capabilities in the Middle East and North Africa

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Author Info

  • Brach, Juliane

    ()
    (University of Copenhagen and German Institute of Global and Area Studies, Hamburg)

  • Naudé, Wim

    ()
    (UNU-MERIT/MGSoG, University of Maastricht)

Abstract

In this paper we investigate the extent of international entrepreneurship in Algeria, Egypt, Morocco, Oman and Syria using a dataset covering 3,281 firms. We find that weak technological capabilities constrain internationalization. Firms with ISO accreditation, an own website, and those who have introduced new technology have a higher probability of entering export markets than otherwise. Firms in high-tech sectors are more likely to export early. However with foreign shareholding this advantage of high-tech firms disappears. The results suggest that early international entrepreneurs may need to pay more in informal payments if they want to increase the share of their exports once they have entered into export markets. We derive implications for policy and further research.

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Bibliographic Info

Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 020.

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Date of creation: 2012
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Handle: RePEc:unm:unumer:2012020

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Keywords: International entrepreneurship; exports; entrepreneurial capabilities; innovation; Middle East; North Africa; MENA;

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References

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  1. Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2005. "What You Export Matters," Working Paper Series, Harvard University, John F. Kennedy School of Government rwp05-063, Harvard University, John F. Kennedy School of Government.
  2. Dierk Herzer & Nowak-Lehnmann Felicitas, 2006. "What does export diversification do for growth? An econometric analysis," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(15), pages 1825-1838.
  3. Neil Rankin & M�ns Söderbom & Francis Teal, 2006. "Exporting from Manufacturing Firms in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 15(4), pages 671-687, December.
  4. Soete, Luc, 2008. "Science, Technology and Development: Emerging concepts and visions," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 001, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Michael Funke & Ralf Ruhwedel, 2005. "Export variety and economic growth in East European transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 13(1), pages 25-50, 01.
  6. Westhead, Paul & Wright, Mike & Ucbasaran, Deniz, 2001. "The internationalization of new and small firms: A resource-based view," Journal of Business Venturing, Elsevier, vol. 16(4), pages 333-358, July.
  7. Juliane Brach & Robert Kappel, 2009. "Global Value Chains, Technology Transfer and Local Firm Upgrading in Non-OECD Countries," GIGA Working Paper Series 110, GIGA German Institute of Global and Area Studies.
  8. Fulvio Castellacci & José Miguel Natera, 2011. "A new panel dataset for cross-country analyses of national systems, growth and development (CANA)," Working Papers del Instituto Complutense de Estudios Internacionales, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales 05-11, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
  9. Juliane Brach, 2010. "Technological Readiness in the Middle East and North Africa – Implications for Egypt," GIGA Working Paper Series 155, GIGA German Institute of Global and Area Studies.
  10. Fahim Al-Marhubi, 2000. "Export diversification and growth: an empirical investigation," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 7(9), pages 559-562.
  11. Naude, Wim & Rossouw, Stephanie, 2009. "Early International Entrepreneurship in China: Extent and Determinants," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  12. World Bank, 2010. "Innovation Policy : A Guide for Developing Countries," World Bank Publications, The World Bank, number 2460, August.
  13. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 23-32, March.
  14. Abu-Qarn, Aamer S. & Abu-Bader, Suleiman, 2007. "Sources of Growth Revisited: Evidence from Selected MENA Countries," World Development, Elsevier, Elsevier, vol. 35(5), pages 752-771, May.
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