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Performance of small- and medium-sized enterprises in services trade: evidence from French firms

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  • Iza Lejárraga
  • Harald Oberhofer

Abstract

This paper empirically investigates the key firm- and industry-specific restrictions to the performance of small- and medium-sized enterprises (SMEs) in services trade. For this purpose, we use firm-level data from firms in France operating in different services sectors over the time period 1998–2007 and formulate two-part models consisting of (1) (dynamic) export equations and (2) (dynamic) export share equations. Our results confirm the view that a relatively low share of SMEs engages in services trade. In line with the new-new trade theory, our results also corroborate that more productive SMEs have a higher export probability. The key finding of this paper is that the export decisions of SMEs in services sectors are estimated to be extremely persistent, implying that trade policy efforts, including the allocation of scarce trade promotion budgets, should be directed at addressing the barriers faced in establishing the first export operation. Finally, our sub-sectoral estimates reveal considerable heterogeneity across different types of services. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Iza Lejárraga & Harald Oberhofer, 2015. "Performance of small- and medium-sized enterprises in services trade: evidence from French firms," Small Business Economics, Springer, vol. 45(3), pages 673-702, October.
  • Handle: RePEc:kap:sbusec:v:45:y:2015:i:3:p:673-702
    DOI: 10.1007/s11187-015-9647-z
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    2. Falk, Martin & de Lemos, Francisco Figueira, 2019. "Complementarity of R&D and productivity in SME export behavior," Journal of Business Research, Elsevier, vol. 96(C), pages 157-168.
    3. Falk, Martin & Hagsten, Eva, 2015. "Export behaviour of SMEs in the Swedish computer service industry," Economics Discussion Papers 2015-14, Kiel Institute for the World Economy (IfW Kiel).
    4. Harald Oberhofer & Hannes Winner, 2015. "Handelseffekte der österreichischen EU-Integration," FIW Policy Brief series 028, FIW.
    5. Beldina Owalla & Cristian Gherhes & Tim Vorley & Chay Brooks, 2022. "Mapping SME productivity research: a systematic review of empirical evidence and future research agenda," Small Business Economics, Springer, vol. 58(3), pages 1285-1307, March.
    6. Nguyen, Quyen T.K. & Almodóvar, Paloma & Wei, Ziyi, 2022. "Intra-firm and arm’s length export propensity and intensity of MNE foreign subsidiaries," Journal of Business Research, Elsevier, vol. 145(C), pages 288-308.
    7. Habermann, Harald, 2017. "Business takeovers and firm growth: Empirical evidence from a German panel," Working Papers 01/17, Institut für Mittelstandsforschung (IfM) Bonn.
    8. Mehmet Civelek & Vladimír Krajèík & Vendula Fialova, 2023. "The impacts of innovative and competitive abilities of SMEs on their different financial risk concerns: System approach," Oeconomia Copernicana, Institute of Economic Research, vol. 14(1), pages 327-354, March.
    9. Alessandro Moro & Enrico Tosti, 2020. "The determinants of service export behaviour in Italian non-financial firms," Questioni di Economia e Finanza (Occasional Papers) 577, Bank of Italy, Economic Research and International Relations Area.
    10. Falk, Martin & Hagsten, Eva, 2015. "Export behaviour of micro firms in the Swedish computer and business service industries," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-24.

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    More about this item

    Keywords

    Internationalization; Services trade; Small- and medium-sized enterprises; Export activities; Dynamic export questions; C23; C25; F14; F23; L26; L80; L90;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General

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