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Signaling and technological marketing tools for exporters


  • Ferro, Esteban


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.

Suggested Citation

  • Ferro, Esteban, 2011. "Signaling and technological marketing tools for exporters," Policy Research Working Paper Series 5547, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5547

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    References listed on IDEAS

    1. Eric A. Verhoogen, 2008. "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector," The Quarterly Journal of Economics, Oxford University Press, vol. 123(2), pages 489-530.
    2. Freund, Caroline L. & Weinhold, Diana, 2004. "The effect of the Internet on international trade," Journal of International Economics, Elsevier, vol. 62(1), pages 171-189, January.
    3. James E. Anderson & Douglas Marcouiller, 2002. "Insecurity And The Pattern Of Trade: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 342-352, May.
    4. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2005. "Assessing The Potential Benefit Of Trade Facilitation: A Global Perspective," World Scientific Book Chapters,in: Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 8, pages 121-160 World Scientific Publishing Co. Pte. Ltd..
    5. Juan Carlos Hallak & Jagadeesh Sivadasan, 2009. "Firms' Exporting Behavior under Quality Constraints," Working Papers 09-13, Center for Economic Studies, U.S. Census Bureau.
    6. Aw, B. -Y. & Hwang, A. R., 1995. "Productivity and the export market: A firm-level analysis," Journal of Development Economics, Elsevier, vol. 47(2), pages 313-332, August.
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    Cited by:

    1. Shahid Yusuf, 2014. "Middle East Transitions; A Long, Hard Road," IMF Working Papers 14/135, International Monetary Fund.
    2. Hanley, Aoife & Monreal Pérez, Joaquín, 2012. "Are newly exporting firms more innovative? Findings from matched Spanish innovators," Economics Letters, Elsevier, vol. 116(2), pages 217-220.
    3. Yadav Niru, 2014. "The Role of Internet Use on International Trade: Evidence from Asian and Sub-Saharan African Enterprises," Global Economy Journal, De Gruyter, vol. 14(2), pages 1-26, April.

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    Economic Theory&Research; E-Business; Microfinance; Labor Policies; Markets and Market Access;

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