Exporting under trade policy uncertainty: Theory and evidence

I provide novel evidence for the impact of trade policy uncertainty on exporters. In a dynamic, heterogeneous firms model, trade policy uncertainty will delay the entry of exporters into new markets and make them less responsive to applied tariff reductions. Policy instruments that reduce or eliminate uncertainty, such as binding trade policy commitments at the WTO, increase entry. The predictions are tested on disaggregated, product-level Australian imports with model-consistent measures of uncertainty. The estimates show that growth of exporter–product varieties would have been 7% lower between 1993 and 2001 without the binding commitments implemented after the WTO was formed in 1996. If Australia reduced all its tariffs and bindings to zero, more than half of predicted product growth is accounted by removing uncertainty. These results illuminate and quantify an important new channel for trade creation.     

Foreign sourcing and exporting

The aim of this paper was analysing the role of sourcing intermediate inputs internationally on export decisions and distinguishing whether intermediates are sourced from firms belonging to the same business group or from independent suppliers. To analyse firms' export decisions, we use a specification that also accounts for sunk costs and accumulated experience in export markets (i.e., export market learning). We consider that importing intermediates might have direct and indirect effects (operating through enhanced productivity) on the export participation decision. The direct effects on exporting are isolated once we control for productivity and the effects of belonging to an international group. We use a manufacturing panel data set drawn from the Spanish Survey on Business Strategies (ESEE) for the period 2006–14. Both productivity and inward or outward FDI increase the probability of exporting. Moreover, our results uncover the existence of sunk costs and export market learning, and also the relevant role played by intermediate imports in firms' export choices. Their effects act both through the (indirect) channel of enhancing firms' productivity and through a direct effect related to product upgrading, more competitive selling prices or learning from the firm's import experience.     

Financial factors and exporting decisions

Is financial health a determinant of export market participation? Is it an outcome? Using a panel of 9292 UK manufacturing firms over the period 1993-2003, we explore the links between firms' financial health and their export market participation decisions. We find that exporters exhibit better financial health than non-exporters. Yet, when we differentiate between continuous exporters and starters, we see that this result is driven by the former. Starters generally display low liquidity and high leverage, possibly due to the sunk costs which need to be met to enter export markets. Furthermore, we find no evidence that firms enjoying better ex-ante financial health are more likely to start exporting, and strong evidence that participation in export markets improves firms' financial health.     

Financial factors and exporting decisions

Is financial health a determinant of export market participation? Is it an outcome? Using a panel of 9292 UK manufacturing firms over the period 1993–2003, we explore the links between firms' financial health and their export market participation decisions. We find that exporters exhibit better financial health than non-exporters. Yet, when we differentiate between continuous exporters and starters, we see that this result is driven by the former. Starters generally display low liquidity and high leverage, possibly due to the sunk costs which need to be met to enter export markets. Furthermore, we find no evidence that firms enjoying better ex-ante financial health are more likely to start exporting, and strong evidence that participation in export markets improves firms' financial health.     

Exporting and Firm Size

Abstract

This paper examines the extent to which small U.S.-based exporters experience problems and difficulties in their export operations not faced by larger U.S.-based exporters. Subsequently, we focus upon the differences between small and large firms with respect to three general areas: the perceived difficulty of various export activities; the perceived helpfulness of various agencies/organizations to export operations; the perceived helpfulness of various actions the federal government has taken or could take with regard to exporting. In areas where we have found significant large-versus small-firm differences we try to provide explanations. Finally, we offer both general and specific recommendations directed at overcoming the problems we have identified in order to facilitate exporting, particularly by small firms.     

Persistence in exporting: Cumulative and punctuated learning effects

We develop a model of export persistence which is based around different patterns of learning by exporting. Cumulative previous exporting can help lengthen subsequent exporting spells, but this can be compromised by the punctuated learning arising from a pattern of sporadic exporting. Firms with episodic exporting exhibit different learning patterns from continuous exporters, and are less likely to develop the deep routine-based learning that comes from constant exposure to managing export markets. Using data from Spanish manufacturers over a 22?year period we find support for a model of differences in export persistence arising from cumulative and punctuated learning by exporting.     

Exporting the Open Skies Concept:

The International Air Transport Act of 1979 promulgated policy guidelines for Americans to achieve the liberalizing goals of unlimited multiple carrier traffic rights without operating restrictions, freedom of pricing, and the elimination of discriminatory or unfair competitive practices in international aviation. This article documents the successes and failures of the United States in exporting the Open Skies concept overseas and examines the marketing impact on American air carriers.     

The Strategies and Characteristics of Exporting SMEs:

The behaviour of exporting firms is the result of the complex interaction of many factors of the external and internal environment both at the national and international level. This paper presents the main findings from an exploratory study which assessed the characteristics and marketing strategies of small- to medium-sized exporting firms in a developing country, Peru. Statistical analysis using non-parametric methods to measure the behaviour of these firms used criteria taken from studies of firms in mostly developed countries. The observations from the analysis indicate that characteristics such as size and management perceptions and commitment, and strategies related to market concentration in developed countries taking into consideration export sales volume as a measure of performance (dependant variable) were positively associated to the success of these Peruvian firms and added to their competitiveness.     

Markups,import competition and exporting

This paper analyses the relationship between markups and international trade at the firm level using a large sample of French manufacturing firms for the period 1995–2007. In particular, the paper investigates the effect of increasing import competition from China on firms' price–cost margins and the way in which exporting interacts with this effect. The results show robust evidence that firms in more direct competition with Chinese imports decrease their markups. However, firms that become exporters experience a smaller reduction in their price–cost margins. Consistent with these findings, the results also show that firms facing tougher competition from China are more likely to start exporting to avoid such competitive pressures.     

Learning by exporting: Lessons from high-technology SMEs

We investigate the learning by exporting hypothesis by examining the effect of exporting on the subsequent innovation performance of a sample of high-technology SMEs based in the UK. We find evidence of learning by exporting, but the pattern of this effect is complex. Exporting helps high-tech SMEs innovate subsequently, but does not make them more innovation intensive. There is evidence that consistent exposure to export markets helps firms overcome the innovation hurdle, but that there is a positive scale effect of exposure to export markets which allows innovative firms to sell more of their new-to-market products on entering export markets. Service sector firms are able to reap the benefits of exposure to export markets at an earlier (entry) stage of the internationalization process than are manufacturing firms. Innovation-intensive firms exhibit a different pattern of entry to and exit from export markets from low-intensity innovators, and this is reflected in different effects of exporting.     

Internal Determinants Affecting Interest in Exporting:

Research on the export behavior of the nonexporting firms has remained limited in developing nations. Therefore, there is little factual information about their export behavior. The objective of the present study is to find out, if there are any structural differences between Turkish nonexporters, which are exploring the feasibility of exporting, and those which are not interested in exporting at all. Findings show that there is a significant relation between company size, management's foreign language proficiency, international orientation, firm's competitive advantages, dependence on imports and desire to sell abroad. However, a significant relation is not found for other internal determinants such as manager's age, company goal, capacity use and technology intensiveness. These findings and implications are of interest to public policy makers, foreign investors and academicians interested in comparative studies.     

Exporting behavior of foreign affiliates: Theory and evidence

Firms have increasingly conducted different stages of production in different countries. In particular, they may set up operations in low-cost countries (those operations are referred to as foreign affiliates in those countries) either as platforms for export or serving the growing markets there. What is the exporting behavior of foreign affiliates? In this paper, using data from China, we find that among foreign affiliates exporters are less productive than non-exporters. We then offer a theoretical explanation by incorporating into the standard firm heterogeneity model the possibility that firms could have different stages of production in different countries.     

Profiling exporting and nonexporting service firms: Critical differences to decision-makers

The internationalization of services has become a critical element in the global marketplace. While the internationalization of services has increased in importance, the lack of empirically based research has been a shortcoming. This article empirically examines key characteristics (i.e., total sales, number of employees, age of firm, management's desire to export, perceived profit potential from internationalization, top management's foreign language skills, and international work experience) separating exporting from nonexporting domestic-based service firms. It provides a profile for the exporting service firm that is distinctly different than that of the nonexporting service provider. These differences suggest important policy considerations for federal and state export promotion agencies and strategy considerations for service firm owners and management. © 1999 John Wiley & Sons, Inc.     

爱尔兰、印度软件产业出口之道

2000岁末，由上海市外经贸委组织的软件考察团一行15人专程赴爱尔兰和印度学习考察软件产业的发展情况和主要经验，以及探索加强双方合作，扩大上海软件出口的可能性。通过学习考察，深悉两国软件产业实属全球同业的佼佼者，他们积累的经验对我国软件产业的发展与出口颇有借鉴意义。     

Human capital and wages in exporting firms

This paper studies the link between the education level of workers, export performance and wages. We argue that firms may escape intense competition in international markets by using high skilled workers to differentiate their products. This story is consistent with our empirical results. Using a very rich matched worker-firm longitudinal dataset, we find that there is a weak negative direct effect of exporting on wages, but an interaction term between export intensity and skill intensity has a positive impact on wages. That is, we find an export wage premium, but only in firms where the skill intensity is sufficiently high.     

Exporting problems: The relevance of export development

Following a review of the export marketing literature, and in light of certain important gaps observed in this area, the focus of this study is an investigation of problems facing the ongoing exporting activities of indigenous manufadurers in a small European country An attempt is made specifically to examine the existence of potentially significant differences in perceptions of exporting problems between two distina exporter categories in terms of export development The findings suggest that the most important export problems experienced by those firms were associated with the intensity of competition in export markets and the lack of effective national export policies The study also reveals several significant differences in perceived export problems between the two exporter classes Avenues for future research are discussed along with the limitations of the study, and managerial and public policy implications of the findings highlighted     

出口与企业生产率:由实证而理论的最新拓展

出口与企业生产率之间关系的研究属于国际贸易研究的最新论题,这原本是个实证论题,后来被提升到理论层面。大量的实证研究文献集中在"自我选择效应"和"出口学习效应"两个命题。理论层面的拓展以对传统理论之企业无差异假定条件的打破为基点。文章在对1995-2006年关于出口与企业生产率关系的实证与理论研究进行归纳、总结的基础上提出了进一步研究的方向。     

Export planning orientation and its antecedents: Evidence from exporting IT products

There is strong support in the export literature for a positive relationship between export planning and export performance. However, little is known about the drivers of export planning. In addressing this knowledge gap, this article proposes that export planning is usefully analyzed in terms of a managerial orientation. Regarding the antecedents of export planning orientation, the focus here is on the role of factors internal to the firm, especially its exporting mindset (export necessity and export commitment). This article also examines to what extent export confidence (psychic distance and marketing advantage) moderates the relationship. The empirical results show that export commitment has a strong and positive effect on a firm's export planning orientation. This relationship is moderated by psychic distance and marketing advantage. Specifically, the results show that the greater the psychic distance and the weaker the marketing advantage, the stronger the relationship between export commitment and a firm's export planning orientation. The results also show that management's perceived export necessity has a negative effect on a firm's export planning orientation and that this relationship remains unaffected by psychic distance and marketing advantage.