Endogenous Product versus Process Innovation and a Firm’s Propensity to Export

This paper provides an empirical analysis of the effects of new product versus process innovations on export propensity at the firm level. Product innovation is a key factor for successful market entry in models of creative destruction and Schumpeterian growth. Process innovation helps securing a firm’s market position given the characteristics of its product supply. Both modes of innovation are expected to raise a firm’s propensity to export. According to new trade theory, we conjecture that product innovation is relatively more important in that regard. We investigate these hypotheses in a rich survey panel data set with information about new innovations of either type. With a set of indicators regarding innovation motives and impediments and continuous variables at the firm and industry level at hand, we may determine the probability of launching new innovations and their impact on export propensity at the firm level through a double treatment approach.product innovation, process innovation, propensity to export, multiple treatment effects estimation

The Effects of Foreign Acquisition on Domestic and Export Markets Dynamics in China

Using recent data from the Chinese manufacturing industry and the generalised propensity score, this paper establishes economically significant causal effects of foreign acquisition on domestic and export markets dynamics.FDI, export, finance

Determinants and Welfare Impacts of Export Crop Cultivation - Empirical Evidence from Ghana

This paper investigates the determinants of farm households‟ participation in export cropping and the impact of export cropping on household welfare, using cross-sectional data obtained from the Ghanaian living standards survey 2005-6. Given the problem of selectivity bias that arise when households self-select into export cropping, we employ the full information maximum likelihood approach to analyze the participation decision, and generalized propensity matching approach to examine the welfare impacts of participation. The empirical results indicate that farmers facing lower transport costs and having better access to credit facilities are more likely to participate in export cropping. Estimates of the welfare impacts of export cropping generally reveal a positive relationship between engagement in export cropping and farm household welfare. However, a consideration of the impact of extent of export cropping shows a non-linear relationship with household welfare indicators, with per capita expenditures rising and poverty declining only at higher levels of export specialization.Export crops, Farm households, Household welfare, Poverty, Generalized propensity score, Crop Production/Industries, International Relations/Trade,

Analysis of the role of process innovation on export propensity in KIBS and non-KIBS firms in Colombia

The purpose of this paper is to analyze the role of the process innovation on export propensity in knowledge-intensive business services (KIBS) firms and non-KIBS firms in Colombia. For the empirical application, the authors use a unique primary data set drawn from the Global Competitiveness Project (GCP: www.gcp.org) that includes information for 57 Colombian KIBS for 2019. The authors use a binary choice model to test the proposed hypotheses on the relevance of KIBS and process innovation in explaining export propensity. The results showed a positive relationship between KIBS and business size with an export propensity, but this relationship is non-meaningful. Also, the findings showed a negative and non-significant relationship between a process innovation and business age with the probability to export. On the other hand, the evidence state that KIBS firms encourage the relationship between propensity to export and process innovation, which is to say that they are highly effective to increase the propensity to export. Finally, the industry increases the probability of export propensity. This study offers a new insight relating to KIBS, process innovation and their contribution to increasing export propensity. The findings of this paper offer relevant information to government policymakers to design strategies that promote export activity in Colombia

The Relationship between Organizational Values and Propensity to Export in Industrial Town of Sanandaj (No.2)

This research investigates the relationship between organizational values and propensity. In the manufacturing Firms of Sanandaj the statistical population includes (No.2). Among these 1142 Cases were Chosen in this research, due to the nature of the research subject and Statistical population. Random Stratified Sampling was used and, based on Cochran formula 287 cases completed the questionnaire the research is descriptive correlational data was gathered by a verified questionnaire which a-Chronbach in the questionnaire included organizational value variable (a=/082).and in the questionnaire , the export propensity was /0 84 the regression analysis result show the control variable (export propensity), is affected at, first , from the variable of the values related to the quality and the consumers. This variable determine 30% of the variance of expert propensity among the studied population then , the control is affected variable from external social value variable this variable determine 29% of the export propensity variance among the studied population then, the control variable from external social value variable this variable determine 29% of the export propensity variance among the studied population. The third effective variable on export propensity is economic - Supportive Values Variables. This variable determined %27 of the export propensity variance among the studied population

Learning-by-Exporting and Destination Effects: Evidence from African SMEs

Vast empirical evidence underscores that exporting firms are more productive than non-exporters. As governments accordingly pursue export-promoting policies we are interested in the firmness of these conclusions with respect to African small and medium sized enterprises (SMEs) and the influence of the destination of export trade. Using a micro-panel dataset from five African countries we confirm the self-selection. We apply propensity scores to match exporters and use a difference-in-difference methodology to test if African SMEs experience productivity gains because of export participation. Results indicate that African firms significantly learn-by-exporting. Manufacturers obtain significant performance improvements due to internationalization although this effect is moderated by export destination. Firms that export outside Africa become more capital intensive and at the same time hire more workers. In contrast we find evidence that exporters within the African region significantly downsize in capital intensity. Results regarding skill-bias of internationally active firms are mixed, where exporters within the region expand in size and hire more relatively unskilled workers.learning-by-exporting, destination effects, firm-level, Africa, propensity scores

Impacts of Competitive Position on Export Propensity and Intensity: An Empirical Study of Manufacturing Firms in China

We examine the impacts of competitive industry position on firms’ export propensity and intensity in China. Drawing on the resource-based view and the structure-conduct-performance paradigm of firm behavior, we investigate whether firms with competitive industry position through cost leadership or differentiation strategy have different export behaviors. We use a longitudinal data of 213,662 manufacturing firms in China from 1998 to 2005 to show that firms that have developed competitive advantages in the domestic market are more likely to export and have higher levels of export intensity. Indigenous and foreign manufacturing firms exhibit different patterns of export behaviors. Foreign firms with differentiation advantages focus on local market expansion instead of seeking opportunity in export markets.

Export Behaviour and Propensity to Innovate in a Developing Country: The Case of Tunisia

The relation between export behaviour and the propensity to innovate is an important question for a developing economy. This article dedicated to this question through the analysis of the first innovation survey of Tunisian firms. We analyze the relationship between the export behaviour and the innovation propensity of the firms as it can be qualified using econometric estimations (mainly probit models) and non-parametrical regression trees on the results of the first community innovation survey in Tunisia. Our results show that firms that address both the domestic and foreign demands (partial- exporters) have the highest propensity to innovate, and they better benefit from external knowledge sources, as well as a diversified demand. We find that external knowledge sources, internal R&D efforts and some types of cooperative agreements are complementary for product innovations, but the first play an essential role, in the sense that firms must benefit from at least one external knowledge source to attain a significant innovation propensity. We show that innovation behaviour of three subsets of firms are strongly contrasted: pure exporters who only address the foreign demand, pure domestic firms, and partial exporters.Innovation; exports; openness; development; absorptive capacity

The impact of sizeof the firm and exchange rate in the export propensity of domestic and foreign owned firms in a developing country: A study of the Brazilian exporters

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and EconomicsIntegrating the resource based view and theory behind exchange rates, this study analysis the export propensity of domestic and foreign owned Brazilian exporters. Panel data of 214 of the biggest Brazilian firms with years ranging from 2001 to 2010 is used with a fixed effects logistic regression. Results suggest that Size and Real Effective Exchange Rate affect the export propensity of firms differently, depending on the source of ownership of the firm. Size will have a high positive impact on the export propensity of foreign owned Brazilian firms, while the Real Effective Exchange Rate will have a low but positive impact on the export propensity of Brazilian owned firms

Exchange Rate Pass-Through in ASEAN: Identifying Supply-Side Constraints to Export Performance in Ecuador: An Exercise with Investment Climate Survey Data

We apply a Heckman selection model to the 2003-Investment Climate Survey (ICS) to investigate supply-side constraints to export performance at the firm level in Ecuador. To correct for the non-random truncation problem, we use the Heckman selection model to estimate the probability of exporting (export propensity) and the share of total sales that are exported (export intensity) by Ecuadorian firms. A baseline model with 12 independent variables divided into three categories – idiosyncratic characteristics, technology, and business environment – is developed. Three other models are developed with the addition of variables related to trade integration, business environment, and infrastructure. Results corroborate with the hypothesis implicit in the Heckman model, which considers both decisions made by a firm – whether to export, and how much of its sales to export – to be interdependent. In the Ecuadorian case, three important results for the firm’s export performance are found: technology matters; infrastructure does not; and trade orientation is significant, with specialized firms tending to have smaller export intensity when having the countries of the Andean Community as their main trade partners, the opposite happening if the U.S. is their main trade partner. We find a robust and stable relationship for export propensity and intensity with size, import of inputs, labor regulations, in-house R&D, quality certification, web-use, and foreign ownership. Also, capacity utilization and trade with the U.S. positively affect export intensity, while trade within the Andean Community has the opposite effect in our outcome variable. No significant relationship was found for the infrastructure variables.World Bank Policy Research Working Paper 4179, March 2007.Ecuador; exports; innovation; foreign networks; business environment; firm level