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Exporting quality: is it the right strategy for the Italian manufacturing sector?

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  • Imbriani, Cesare
  • Morone, Piergiuseppe
  • Testa, Giuseppina

Abstract

ABSTRACT: Recently, most European manufacturing firms have been engaged in a number of innovative activities to survive the growing competition coming from newly-industrialising countries. Italian manufacturing industry, which relies largely on SMEs, is struggling to regain competitiveness in global markets. In light of these stylised facts, we first investigate whether innovating activities and quality goods’ production enhance Italian SMEs’ probability to be exporter. Our findings suggest that both products’ quality and innovative activities affect considerably SMEs’ likelihood to export. Subsequently, using the Chow test, we find evidence for a structural break produced by quality, which results in substantial differences between high and low-quality firms. The former are more likely to export if they introduce product innovation, marketing innovation and/or organisational changes, the latter increase their chances of exporting when introducing process innovations and organisational changes.

Suggested Citation

  • Imbriani, Cesare & Morone, Piergiuseppe & Testa, Giuseppina, 2008. "Exporting quality: is it the right strategy for the Italian manufacturing sector?," MPRA Paper 13327, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:13327
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    References listed on IDEAS

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    1. Péter Harasztosi, 2016. "Export spillovers in Hungary," Empirical Economics, Springer, vol. 50(3), pages 801-830, May.
    2. Stojcic, Nebojsa & Hashi, Iraj, 2011. "The structure and quality upgrading of Croatian exports to EU15 market," MPRA Paper 108761, University Library of Munich, Germany, revised May 2011.
    3. Gabor Bekes & Peter Harasztosi, 2010. "Agglomeration Premium and Trading Activity of Firms," CERS-IE WORKING PAPERS 1001, Institute of Economics, Centre for Economic and Regional Studies.

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    More about this item

    Keywords

    SMEs; exports; innovative activities; quality; probit;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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