IDEAS home Printed from https://ideas.repec.org/p/bdi/opques/qef_112_12.html
   My bibliography  Save this paper

Are firms exporting to China and India different from other exporters?

Author

Listed:
  • Giorgio Barba Navaretti

    () (University of Milan)

  • Matteo Bugamelli

    () (Bank of Italy)

  • Riccardo Cristadoro

    () (Bank of Italy)

  • Daniela Maggioni

    () (Universit� Politecnica delle Marche)

Abstract

This paper asks whether and why advanced countries differ in their ability to export to China and India. We exploit a newly collected, comparable cross-country survey of 15,000 European manufacturing firms (EFIGE). The dataset contains information on firms� international activities and characteristics such as size and productivity, governance and management structure, workforce, innovation and research activity. We identify the firm characteristics that are correlated with exporting activity in general as well as with exporting to China and India conditional on being an exporter. In line with existing literature, we prove that larger, more productive and innovative firms are more likely to become exporters and to export more. Our results also provide new evidence on the role of governance: while there is not a strong negative effect of family ownership, a higher percentage of family management reduces a firm�s export propensity and export volumes. Regarding China and India, we find that firms exporting there are on average larger, more productive and more innovative than firms exporting elsewhere.

Suggested Citation

  • Giorgio Barba Navaretti & Matteo Bugamelli & Riccardo Cristadoro & Daniela Maggioni, 2012. "Are firms exporting to China and India different from other exporters?," Questioni di Economia e Finanza (Occasional Papers) 112, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:opques:qef_112_12
    as

    Download full text from publisher

    File URL: http://www.bancaditalia.it/pubblicazioni/qef/2012-0112/QEF_112.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Marianne Bertrand & Antoinette Schoar, 2006. "The Role of Family in Family Firms," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 73-96, Spring.
    2. Mike Burkart & Fausto Panunzi & Andrei Shleifer, 2003. "Family Firms," Journal of Finance, American Finance Association, vol. 58(5), pages 2167-2202, October.
    3. Avinash Dixit, 1989. "Hysteresis, Import Penetration, and Exchange Rate Pass-Through," The Quarterly Journal of Economics, Oxford University Press, vol. 104(2), pages 205-228.
    4. Bleaney, Michael & Wakelin, Katherine, 2002. " Efficiency, Innovation and Exports," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(1), pages 3-15, February.
    5. Jonathan Eaton & Samuel Kortum & Francis Kramarz, 2004. "Dissecting Trade: Firms, Industries, and Export Destinations," American Economic Review, American Economic Association, vol. 94(2), pages 150-154, May.
    6. David Sraer & David Thesmar, 2007. "Performance and Behavior of Family Firms: Evidence from the French Stock Market," Journal of the European Economic Association, MIT Press, vol. 5(4), pages 709-751, June.
    7. Navaretti, Giorgio Barba & Faini, Riccardo & Tucci, Alessandra, 2008. "Does family control affect trade performance?: evidence for Italian firms," LSE Research Online Documents on Economics 28509, London School of Economics and Political Science, LSE Library.
    8. Andrew Ellul & Marco Pagano & Fausto Panunzi, 2010. "Inheritance Law and Investment in Family Firms," American Economic Review, American Economic Association, vol. 100(5), pages 2414-2450, December.
    9. Giordano Mion & Luca David Opromolla, 2011. "Managers’ Mobility, Trade Status, and Wages," Working Papers w201104, Banco de Portugal, Economics and Research Department.
    10. Favero, Carlo A. & Giglio, Stefano W & Honorati, Maddalena & Panunzi, Fausto, 2006. "The Performance of Italian Family Firms," CEPR Discussion Papers 5786, C.E.P.R. Discussion Papers.
    11. Francesco Caselli & Nicola Gennaioli, 2013. "Dynastic Management," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 971-996, January.
    12. Bernard, Andrew B. & Jensen, J. Bradford & Schott, Peter K., 2006. "Trade costs, firms and productivity," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 917-937, July.
    13. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
    14. Matteo Bugamelli & Luigi Infante, 2003. "Sunk Costs of Exports," Temi di discussione (Economic working papers) 469, Bank of Italy, Economic Research and International Relations Area.
    15. Campa, Jose Manuel, 2004. "Exchange rates and trade: How important is hysteresis in trade?," European Economic Review, Elsevier, vol. 48(3), pages 527-548, June.
    16. David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, vol. 117(517), pages 134-161, February.
    17. Marin, Dalia & Verdier, Thierry, 2006. "Corporate Hierarchies and the Size of Nations: Theory and Evidence," Discussion Papers in Economics 1346, University of Munich, Department of Economics.
    18. Nick Bloom & Raffaella Sadun & John Van Reenen, 2008. "Measuring and Explaining Management Practices in Italy," Rivista di Politica Economica, SIPI Spa, vol. 98(2), pages 15-56, March-Apr.
    19. Davide Castellani, 2002. "Export behavior and productivity growth: Evidence from Italian manufacturing firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(4), pages 605-628, December.
    20. Sourafel Girma & David Greenaway & Richard Kneller, 2004. "Does Exporting Increase Productivity? A Microeconometric Analysis of Matched Firms," Review of International Economics, Wiley Blackwell, vol. 12(5), pages 855-866, November.
    21. Francesco Serti & Chiara Tomasi, 2008. "Self-Selection and Post-Entry Effects of Exports: Evidence from Italian Manufacturing Firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(4), pages 660-694, December.
    22. repec:hrv:faseco:30747196 is not listed on IDEAS
    23. repec:spr:weltar:v:144:y:2008:i:4:p:596-635 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alessandro Borin & Riccardo Cristadoro, 2014. "Foreign direct investment and multinational firms," Questioni di Economia e Finanza (Occasional Papers) 243, Bank of Italy, Economic Research and International Relations Area.
    2. Baronchelli, Gianpaolo & Bettinelli, Cristina & Del Bosco, Barbara & Loane, Sharon, 2016. "The impact of family involvement on the investments of Italian small-medium enterprises in psychically distant countries," International Business Review, Elsevier, vol. 25(4), pages 960-970.
    3. Alessandro Borin & Riccardo Cristadoro & Elena Mattevi, 2014. "Foreign direct investment and institutional quality," Questioni di Economia e Finanza (Occasional Papers) 230, Bank of Italy, Economic Research and International Relations Area.
    4. Andrea ÉLTETŐ & Katalin VÖLGYI, 2013. "Integrated in the global value chains - trade developments between Hungary and Asia," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4, pages 57-79, June.
    5. Guido Bortoluzzi & Marina Chiarvesio & Raffaella Tabacco, 2014. "Le imprese del Nord Est alla conquista dei mercati emergenti," ECONOMIA E SOCIETÀ REGIONALE, FrancoAngeli Editore, vol. 2014(2), pages 31-43.
    6. Riccardo Cristadoro & Leandro D’Aurizio, 2015. "The Italian Firms’ International Activity," Questioni di Economia e Finanza (Occasional Papers) 261, Bank of Italy, Economic Research and International Relations Area.

    More about this item

    Keywords

    exports; productivity; firm size; management.;

    JEL classification:

    • F1 - International Economics - - Trade
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdi:opques:qef_112_12. 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: (). General contact details of provider: http://edirc.repec.org/data/bdigvit.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.