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Which firms export? An empirical analysis for the manufacturing sector in the MENA region

Author

Listed:
  • Ali Fakih
  • Pascal L. Ghazalian

Abstract

Purpose - – The purpose of this paper is to analyse the export behaviour of manufacturing firms located in the Middle East and North Africa (MENA) region using data from the World Bank's Enterprise Surveys Database. Design/methodology/approach - – This paper examines the factors influencing the export behaviour of manufacturing firms located in the MENA region through a probit model for export decision and through a fractional logit model for export intensity. Findings - – The empirical results show significant positive effects of private foreign ownership, information and communication technology, and firm size on the probability of exporting and on export intensity of MENA manufacturing firms. Government ownership tends to exert negative effects on firms’ propensity to export. The results underscore enhancing effects of national economic development levels on firms’ export performance. Also, they indicate that firms’ propensity to export decreases with larger domestic market size. The empirical analysis reveals considerable heterogeneity in the implications of firm characteristics for firms’ export behaviour through firm size categories and across MENA countries. Originality/value - – This paper contributes to the literature by conducting overall and comparative cross-country empirical analyses of the factors influencing the export behaviour of manufacturing firms located in the MENA region. It also explores the specificities of small and large firms’ responses to the factors influencing firms’ export behaviour. The results have implications for policies intended to enhance industrial growth and international competitiveness of the manufacturing sector in the MENA region.

Suggested Citation

  • Ali Fakih & Pascal L. Ghazalian, 2014. "Which firms export? An empirical analysis for the manufacturing sector in the MENA region," Journal of Economic Studies, Emerald Group Publishing, vol. 41(5), pages 672-695, September.
  • Handle: RePEc:eme:jespps:v:41:y:2014:i:5:p:672-695
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    Citations

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    Cited by:

    1. repec:ebl:ecbull:eb-18-01001 is not listed on IDEAS
    2. Mahmoud Arayssi & Ali Fakih, 2015. "Institutions and development in MENA region: evidence from the manufacturing sector," International Journal of Social Economics, Emerald Group Publishing, vol. 42(8), pages 717-732, August.
    3. Ali Fakih & Pascal L. Ghazalian, 2015. "What factors influence firm perceptions of labour market constraints to growth in the MENA region?," International Journal of Manpower, Emerald Group Publishing, vol. 36(8), pages 1181-1206, November.
    4. Mahmoud Arayssi & Ali Fakih, 2015. "Institutions and development in MENA region: evidence from the manufacturing sector," International Journal of Social Economics, Emerald Group Publishing, vol. 42(8), pages 717-732, August.
    5. Ali Fakih & Pascal Ghazalian, 2015. "Female employment in MENA’s manufacturing sector: the implications of firm-related and national factors," Economic Change and Restructuring, Springer, vol. 48(1), pages 37-69, February.
    6. Ahmed Fayez Abdelgouad, 2016. "Exporting and Workforce Skills-Intensity in the Egyptian Manufacturing Firms: Empirical Evidence Using World Bank Firm-Level Data for Egypt," Working Paper Series in Economics 358, University of Lüneburg, Institute of Economics.

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