Signaling and technological marketing tools for exporters
Besides superior productivity, what other firm characteristics are associated with export success? This empirical study identifies the effects of signaling tools (foreign technical license, International Standards Organization certification, and review of financial statements) and Internet tools (email and website) on export frequency and intensity of firms in developing countries. Using data from the World Bank’s Enterprise Survey, the author finds that productivity, size, foreign ownership, International Standards Organization certification, and the use of Internet tools have positive effects on the probability of exporting and on the intensive margin of trade. International Standards Organization certified firms are 22 percent more likely to be exporters, whereas firms that use their own website to communicate with clients and suppliers increase the likelihood they export by 11 percent. Among exporting firms, those that are International Standards Organization certified sell 41 percent more abroad than firms that are not certified. Firms that use email sell 31 percent more in foreign markets than exporting firms that do not.
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