The Role of Export Market Participation in the Choice of Organizational Form of Production Technology PDF Download

Author: Andrey Stoyanov
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Languages : en
Pages : 0

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This paper shows that the reason for a higher capital-labour ratio, observed for exporting firms, is a higher capital intensity of their production technology. Exporters choose to use different organizational forms of their production process, in which the share of capital and intermediate inputs in the final output is higher than that of non-exporters. The organization of the production process is part of the firm's organizational strategy, which generates within-industry heterogeneity in factor intensities and production technologies. The results of this study indicate that the decision to export is preceded by a process of restructuring production technology, which then has the effect of increasing a firms productivity and in so doing prepares them for competition in the global market.

Author: Evis Sinani
Publisher:
ISBN:
Category :
Languages : en
Pages : 42

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This paper investigates the importance of sunk costs, firm characteristics and spillovers from nearby exporters on a firm's export participation decision. The empirical analysis involves the estimation of a non-structural, discrete choice, dynamic model with firm heterogeneity. The results suggest that both sunk costs and observable firm characteristics are important determinants of export market participation. In addition, previous history matters, in that, if a firm has been exporting the last period or the period before that it significantly increases the likelihood of the firm exporting in the current period. This conclusion is robust across all specifications. Also, larger firms with high capital intensity and foreign owned are more likely be exporters. Finally, while there is no clear evidence on export spillovers, if a firm operates in an export-oriented industry increases the likelihood of exporting. Dynamic Panel, sunk costs, export decision.

Author: Camila Casas
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Languages : en
Pages :

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Author: Evis Sinani
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Languages : en
Pages :

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Abstract: In this paper we investigate the importance of sunk costs, firm characteristics and spillovers from nearby exporters on a firm's decision to participate in exporting. The empirical analysis involves the estimation of a non-structural, discrete choice, dynamic model with firm heterogeneity. By using panel data for Estonian companies from 1994 to 1999 we find that: (i) both sunk costs and observable firm characteristics are important determinants of export market participation; (ii) previous history matters, in that, if a firm has been exporting the previous period or the period before, it significantly increases the likelihood of the firm exporting in the current period; (iii) larger firms with high capital intensity and foreign ownership are more likely to be exporters; (iv) operating in an export-oriented industry increases a firm's likelihood of exporting

Author: John R. Baldwin
Publisher:
ISBN: 9780662347897
Category : Export marketing
Languages : en
Pages : 0

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This paper examines the relationship between productivity of a manufacturing plant and its participation in exporting activities. There are 2 possible explanations for a positive relationship between the two. First, higher productivity and higher efficiency may be required if plants are to enter export markets. Second, by exporting, plants may learn of superior technologies and management techniques and increase their productivity. The paper examines both possibilities. It also examines differences in the effect of exporting on productivity between foreign- and domestic-controlled plants, and between young and older plants.

Author: John Russel Baldwin
Publisher:
ISBN: 9780660067063
Category : Export marketing
Languages : en
Pages : 34

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"This paper asks whether research and development (R&D) drives the level of competitiveness required to successfully enter export markets and whether, in turn, participation in export markets increases R&D expenditures. Canadian non-exporters that subsequently entered export markets in the first decade of the 2000s are found to be not only larger and more productive, as has been reported for previous decades, but also more likely to have invested in R&D. Both extramural R&D expenditures (purchased from domestic and foreign suppliers) and intramural R&D expenditures (performed in-house) increase the ability of firms to penetrate export markets. Exporting also has a significant impact on subsequent R&D expenditures; exporters are more likely to start investing in R&D. Firms that began exporting increased the intensity of extramural R&D expenditures in the year in which exporting occurred"--Abstract.

Author: Bee Yan Aw
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Languages : en
Pages : 0

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This paper uses micro panel data for firms in the Taiwanese electronics industry in 1986, 1991 and 1996 to investigate a firm's decision to invest in two sources of knowledge - participation in the export market and investments in R&D and/or worker training - and assess their effect on the firm's future productivity. The firm's decisions to export and invest in R&D and/or worker training are modelled with a bivariate probit model that recognises the interdependence of the decisions. The effect of these investments on the firm's future productivity trajectory is then modelled while controlling for the selection bias introduced by endogenous firm exit. The findings indicate a significant interaction effect between exporting and R&D investments and future productivity, after controlling for size, age and current productivity. Firms that undertake both investment activities have significantly higher future productivity than firms that do one or neither. In addition, these firms are more likely to continue investing in these activities leading to further productivity gains. These findings are consistent with the hypothesis that export experience is an important source of productivity growth for Taiwanese firms and that firm investments in R&D and worker training facilitate their ability to benefit from their exposure to the export market.

Author: John Russel Baldwin
Publisher:
ISBN: 9780662347897
Category : Export marketing
Languages : en
Pages : 33

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Author: John R. Baldwin
Publisher:
ISBN:
Category :
Languages : en
Pages : 35

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The paper examines how Canadian manufacturing plants have responded to reductions in tariff barriers between Canada and the rest of world over the past two decades. Three main conclusions emerge from the analysis. First, trade liberalization was a significant factor behind the strong export growth of the Canadian manufacturing sector. As trade barriers fell, more Canadian plants entered the export market and existing exporters increased their share of shipments sold abroad. Second, export-market participation was associated with increases in a plant's productivity growth. Third, our analysis identified the presence of three main mechanisms through which export-market participation raises productivity growth among plants: learning by exporting; exposure to international competition; and increases in product specialization that allowed for exploitation of scale economies. Our evidence also shows that plants that move into export markets increase investments in Ramp;D and training to develop capacities for absorbing foreign technologies and international best practices. Finally, entering export markets leads to increases in the number of advanced technologies being used, increases in foreign sourcing for advanced technologies and improvements in the information available to firms about advanced technologies. It is also associated with improvements in the novelty of the innovations that are introduced.

Author: Sofronis Clerides
Publisher:
ISBN:
Category : Export marketing
Languages : en
Pages : 82

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Is there any empirical evidence that firms become more efficient after becoming exporters? Do firms that become exporters generate positive spillovers for domestically-oriented producers? In this paper we analyze the causal links between exporting and productivity using firm-level panel data from three semi-industrialized countries. Representing export market" participation and production costs as jointly dependent autoregressive processes, we look for evidence that firms' stochastic cost processes shift when they break into foreign markets. We find that relatively efficient firms become exporters, but firms' unit costs are not affected by previous export market participation. So the well-known efficiency gap between exporters and non-exporters is due to self-selection of the more efficient firms into the export market, rather than learning by exporting. Further, we find some evidence that exporters reduce the costs of breaking into foreign markets for domestically oriented producers, but they do not appear to help these producers become more efficient.