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Economic performance and international trade engagement: the case of Portuguese manufacturing firms

Author

Listed:
  • Armando Silva

    () (Faculdade de Economia, Universidade do Porto)

  • Óscar Afonso

    () (CEF.UP and Faculdade de Economia, Universidade do Porto)

  • Ana Paula Africano

    () (CEF.UP and Faculdade de Economia, Universidade do Porto)

Abstract

By combining economic and financial data for Portuguese manufacturing firms with data of their exports and imports, we uncover some aspects of the relationship between international trade engagement and firms’ performance. In line with recent theoretical and empirical developments in the international trade literature: (i) we testify that Portuguese international trade is highly concentrated, especially on the import side, and both in inter- and intra-sector terms; (ii) we corroborate previous studies and theses according to which two-way traders outperform only importers, only exporters and above all domestic firms; (iii) we find that the greater the diversification of markets and goods (especially with regard to imports) the better the performance achieved by internationalized firms; (iv) we also present evidence that destination markets, for exports, and, origin markets, for imports, are also important in explaining the performance of firms.

Suggested Citation

  • Armando Silva & Óscar Afonso & Ana Paula Africano, 2010. "Economic performance and international trade engagement: the case of Portuguese manufacturing firms," FEP Working Papers 369, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:369
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    References listed on IDEAS

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    Cited by:

    1. Valeria Gattai & Giorgia Sali, 2016. "FDI and heterogeneous performance of European enterprises," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(1), pages 25-65, March.
    2. Dalgic, Basak & Fazlioglu, Burcu & Gasiorek, Michael, 2015. "Costs of trade and self-selection into exporting and importing: The case of Turkish manufacturing firms," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 9, pages 1-28.
    3. Joachim Wagner, 2012. "International trade and firm performance: a survey of empirical studies since 2006," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 235-267, June.
    4. Golikova Victoria & Kuznetsov Boris, 2016. "The Role of Innovation and Globalization Strategies in Post-Crisis Recovery," HSE Working papers WP BRP 123/EC/2016, National Research University Higher School of Economics.
    5. Dikova, Desislava & Jaklič, Andreja & Burger, Anže & Kunčič, Aljaž, 2016. "What is beneficial for first-time SME-exporters from a transition economy: A diversified or a focused export-strategy?," Journal of World Business, Elsevier, vol. 51(2), pages 185-199.
    6. repec:spr:rvmgts:v:12:y:2018:i:1:d:10.1007_s11846-016-0218-8 is not listed on IDEAS
    7. Neil Foster-McGregor & Anders Isaksson & Florian Kaulich, 2016. "Importing, Productivity and Absorptive Capacity in Sub-Saharan African Manufacturing and Services Firms," Open Economies Review, Springer, vol. 27(1), pages 87-117, February.
    8. Wagner Joachim, 2012. "Trading many goods with many countries: Exporters and importers from German manufacturing industries," Review of Economics, De Gruyter, vol. 63(2), pages 170-186, August.
    9. Dalgıç, Başak & Fazlıoğlu, Burcu & Gasiorek, Michael, 2015. "Engagement in Asymmetric Markets: Causes and Consequences," MPRA Paper 63854, University Library of Munich, Germany.
    10. Desislava Dikova & Andreja Jaklic & Anze Burger & Aliaz Kuncic, 2014. "Export diversity or focus? What strategy is best for first-time internationalizing SMEs from an emerging market?," Working Papers/Institute for International Business iibp1, Institute for International Business.
    11. Nakhoda, Aadil, 2012. "The influence of financial leverage of firms on their international trading activities," MPRA Paper 35765, University Library of Munich, Germany.
    12. Armando Silva & Óscar Afonso & Ana Paula Africano, 2010. "Do Portuguese manufacturing firms self select to exports?," FEP Working Papers 371, Universidade do Porto, Faculdade de Economia do Porto.
    13. Başak Dalgıç & Burcu Fazlıoğlu & Michael Gasiorek, 2015. "Export Spillovers from Foreign Direct Investment: Evidence from Turkey," Working Papers 2015/08, Turkish Economic Association.
    14. Neil Foster-McGregor & Anders Isaksson & Florian Kaulich, 2016. "Importing, Productivity and Absorptive Capacity in Sub-Saharan African Manufacturing and Services Firms," Open Economies Review, Springer, vol. 27(1), pages 87-117, February.

    More about this item

    Keywords

    International trade; Firm performance; Diversification;

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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