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The Impact Of Industry Characteristics On Firms’ Export Intensity

Author

Listed:
  • Joana Reis

    () (Faculdade de Economia do Porto)

  • Rosa Forte

    () (Faculdade de Economia do Porto)

Abstract

The process of globalization of economies and markets has led firms to consider entry into foreign markets. Exporting is the simplest foreign market entry mode, but also the most common, not requiring high financial and human resources. Hence it is important to study the factors that can affect the firm’s export intensity, measure commonly used to assess the export performance. Several authors have studied the factors that influence the firm’s export performance, but few have addressed the relationship between industry characteristics and export intensity. Thus, the objective of the present study is to analyze the impact of industry characteristics (capital intensity, R&D intensity, labor productivity, export orientation, and concentration level) on the firm’s export intensity, seeking to add empirical evidence to this relatively neglected research area. Based on a sample of 1,425 Portuguese firms during the period 2008-2010, and using panel data estimation, the empirical results show that some industry characteristics (labor productivity, export orientation, concentration), as well as firm characteristics (labor productivity, size) are important determinants of a firm’s export intensity. In particular, we conclude that firm export intensity is positively affected by labor productivity (at industry and firm level), corroborating the idea that firms and governments need to direct their policies towards increased productivity in order to improve competitiveness in foreign markets.

Suggested Citation

  • Joana Reis & Rosa Forte, 2014. "The Impact Of Industry Characteristics On Firms’ Export Intensity," FEP Working Papers 524, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:524
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    File URL: http://www.fep.up.pt/investigacao/workingpapers/wp524.pdf
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    References listed on IDEAS

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    3. Jens Matthias Arnold & Katrin Hussinger, 2005. "Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(2), pages 219-243, July.
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    5. Ursic, Michael L. & Czinkota, Michael R., 1984. "An experience curve explanation of export expansion," Journal of Business Research, Elsevier, vol. 12(2), pages 159-168, June.
    6. Panagiotis Ganotakis & James H Love, 2012. "Export propensity, export intensity and firm performance: The role of the entrepreneurial founding team," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(8), pages 693-718, October.
    7. Pla-Barber, José & Alegre, Joaquín, 2007. "Analysing the link between export intensity, innovation and firm size in a science-based industry," International Business Review, Elsevier, vol. 16(3), pages 275-293, June.
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    More about this item

    Keywords

    Export performance; export intensity; Portuguese firms; industry characteristics;

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

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