Export Intensification by Firms During Domestic Economic Recession

The present paper investigates the influence of an economic recession in the domestic market on the export marketing behavior of firms. The thesis of the paper is that firms intesify their export marketing efforts in order to overcome domestic adversity, a notion for which there is, at present, very little conclusive evidence. The paper presents findings from an empirical study, involving United States exporters during the 1980-82 recession, that suggest that a domestic recession is a significant export stimulant. Firms which are adversely affected by a recession are more likely than unaffected firms to intensify their exports. The paper also concludes that firms which intensify their exports in response to a recession are likely to exhibit a pronounced emphasis on more tactical and short-term export marketing activities. Finally, contrary to our expectation, the perceived benefits of export intensification during the recession were found to be inversely related to firms' export involvement.