Drivers Of Exports Research Articles

Asymmetric Exchange Rate Effects on Trade Flows in India

This paper examines the role of exchange rate changes on India’s trade. The drivers of exports and imports (income, exchange rate including sectoral differences, and exchange rate variability) are estimated for the short and long run including a structural break. Using annual data from 1994 to 2022, the results of dynamic fixed effects estimation show that both exports and imports are income-elastic in the short and long run, but income elasticity is far stronger for exports. Moreover, exports are responsive to the real effective exchange rate in the short run but not in the long run, and the reverse is true for imports. Furthermore, exchange rates have asymmetric effects for high-volume and primary sectors for exports and imports. The combined impacts show the ineffectiveness of using currency depreciation to address trade imbalances.

Profiling exporting SMEs: The role of innovation-orientation

Existing evidence suggest that SME exporting is affected by a combination of environmental, firm-level, and owner-level drivers. However, it is not yet clear what constitute the profile of exporting SMEs and whether innovation orientation plays a role. To fill this important gap, our study adopts a configurational approach contending that a specific set of drivers makeup the profiles of exporting SMEs. Using the Classification and Regression Trees (CART) algorithm, we empirically show three distinctive exporting profiles for product, service, and process innovators, with varying magnitude and importance of export drivers. Our results show the most important export drivers for product, service and process innovators. While process innovators’ profile excludes process innovation, product and service innovators’ profiles include product and service innovation respectively. These results lead to major policy and managerial implications in relation to promoting exporting among SMEs given that the UK has left the European Union.

The Drivers of Export in Microenterprises

The Drivers of Export in Microenterprises

The drivers of export in microenterprises

The drivers of export in microenterprises

Resources and digital export: An RBV perspective on the role of digital technologies and capabilities in cross-border e-commerce

Building on the resource-based view (RBV) perspective of the firm and firms’ competitive capabilities, this study examines the digital export drivers as means for firms to exploit opportunities brought about by digital technologies in their B2C digital marketing activities. By leveraging a unique dataset covering 102 Italy-based firms of different sizes (small, medium, and large), active in three different sectors (design and furniture, fashion, and food and beverage), this work examines the role of firm resources to support internationalization via digital channels. We find that: (1) SMEs do not suffer from a weaker propensity to engage with digital export despite resources constraints; (2) firms leveraging digital technologies are more likely to enhance their digital export, regardless of firm size; (3) digital capabilities are critical as firms employing an e-commerce manager have a higher propensity to undertake digital export than firms relying on a traditional export manager, regardless of firm size.

Do local business peculiarities matter in internationalisation A perspective from micro, small and medium-scale entrepreneurs in business clusters

The factors that drive small business clusters in internationalisation have recently become a matter of great interest for policy makers in emerging and developing economies as these policy makers strive for sustained economic growth. Yet, the literature overlooks the significant influence that co-location plays in generating the needed environment within dynamic relationships, to drive the internationalisation activities in business cluster. We address this gap by collecting and analysing empirical qualitative data from two food processing clusters in Ghana and posit that the local business environment and unique sociocultural factors may influence exports of micro, small and medium-scale businesses. The key findings revealed that partnerships between multinational and indigenous businesses (international exposure of fruit processing businesses and socially embedded relationship of associations and local distributors) have made it possible for dynamic networks to be established in international markets. These export drivers are sustained by socio-cultural collaborative relationships which allow micro, small and medium-enterprises (MSME) to internationalise, while maintaining their local peculiarities.

The Determinants of Service Export Behaviour in Italian Non-Financial Firms

This paper analyses the main drivers of Italian service exports using firm-level data. A gravity equation, augmented with firm characteristics and FDI variables, is estimated using a panel of Italian exporters constructed by merging two datasets, the first on international trade in services and the second on FDI relationships, both used to compile the Italian balance of payments. After presenting a formal justification for the presence of FDI variables in the gravity equation, the model is estimated using a panel composed of non-financial firms exporting services other than travel, transport and processing in the period from 2013 to 2018. The econometric analysis shows that FDI is, among the standard drivers of exports (firm size and productivity, foreign demand, trade costs), a significant variable that positively affects Italian firms’ exports of services, pointing to complementarity rather than to substitution. This evidence suggests that a significant component of trade in services includes intra-group transactions.

The drivers of export value-added in China’s provinces: a multi-regional input–output model

ABSTRACT It is vital to calculate Chinese provinces’ exports in domestic and global value chains from the perspective of value-added to address the problem of double counting. In this study, we calculated the direct and indirect domestic value-added in exports of 30 Chinese provinces using cross-border and cross-regional input–output tables in 2007 and 2012. We analysed the drivers of export value-added based on structural decomposition analysis. The results show that there is a value-added spatial imbalance in trade development. The export value-added of eastern provinces is significantly higher than that of central and western provinces, but this imbalance is gradually improving. The domestic value chain is the main channel for each province to realize export value-added, and the province production channels account for the highest proportion in this chain. The export value-added through international production channels is relatively small but growing in importance. The structural analysis shows that the increase of Chinese provinces’ export value-added is mainly caused by an increase of export scale and the provincial multiplier effect, while the value-added ratio of Chinese provinces has the main restraining effect. The spillover effect from industrial cooperation between provinces and other economies also increases the domestic value-added of exports.

Key determinants of SMEs’ export performance: a resource-based view and contingency theory approach using potential mediators

PurposeVarious barriers discourage small and medium-sized enterprises (SMEs) from entering or expanding their export activities in the international markets, especially SMEs in emerging markets. The purpose of this study is to look at capacity building to accelerate SMEs’ export performance.Design/methodology/approachThis study draws on contingency theory and takes a resource-based and market-based view to provide a holistic understanding of the issue. This study uses primary data collected via extensive surveys from active SMEs in three main industrial regions in Vietnam to undertake confirmatory factor analysis and structural equation modeling for quantitative analysis.FindingsThe results confirm and show the significant effects of various determinants on firms’ export performance. These research findings have scientific contribution and significant implications by understanding the effective internal and external export drivers and mediators in an emerging market and enhancing SMEs’ export performance.Practical implicationsThis study helps SMEs to improve their export performance by systemizing their decision-making in export activities, improving main export drivers highlighted in this study and developing required training programs for their teams. The outcomes also helps policymakers and regulators to improve the current SME ecosystem in Vietnam through training programs, improving policies, facilitating trades, providing more government assistance etc. The results of this study can be extended to other emerging markets with a similar economic structure and legal system.Originality/valueGiven the need for more work on export performance, this paper develops and tests a holistic conceptual framework that accounts for all aspects of export drivers, and provides a more comprehensive model for examining SMEs’ export drivers. This theoretical framework also incorporates three potential mediators (i.e. innovation strategy, export marketing strategy and business strategy) to investigate the effect of internal and external factors on export performance, highlighting the importance of the mediating effects on SMEs in achieving growth and competing in the international arena.

Locus and Revenue of Export Manufacturers: Why Extra-Regional Markets?

ABSTRACT Despite substantial research on exporting in Africa, there has been negligible if any empirical research on a choice between regional and extra-regional markets as the locus of firms’ expansion. Using multiple-case studies, this paper provides an in-depth analysis of the drivers of exports revenue from extra-regional markets. The paper also explores whether two main theories, transaction cost economics (TCE) and resource-based view (RBV) compete or complement each other in explaining the choice of this market category. Data and information from an open-ended interview with four firms and five supporting institutions show that country-specific advantages attract investors with superior resources and capabilities to lucratively exploit preferential market opportunities in extra-regional markets, particularly USA. When choosing the latter over regional markets, firms anchor their operations in the global value chains, the TCE and RBV intertwine in providing further explanations. In conclusion, this study urges governments and business managers targeting high-value markets outside Africa to tie buyer-driven industries such as clothing to similar value chains.

Quality Upgrading and Export Performance in the Asian Growth Miracle

We explore the contribution of product-quality upgrading to the export performance of six fast-growing Asian economies: China, India, Indonesia, Malaysia, South Korea, and Thailand. We focus on measuring the impact of quality upgrading on the changes in these countries’ sectoral export shares during 1970–2010. We build a multisector Ricardian trade model which allows for changes in product quality, and calibrate it to generate predictions about export volumes. Unlike previous literature, our approach allows estimation without employing domestic production data. Our results point to quality upgrading being a key driver of export shares.

Enhancing export performance of small and medium-sized enterprises in emerging markets

Purpose- Although there are various benefits for SMEs to expand their businesses to international markets, there are many obstacles that discourage them to move internationally, especially in emerging markets. This study focuses on the capacity building to enhance SME export activities in an emerging market. Methodology- Eventhough the latest literature in the area of export performance have focused on firms from the emerging countries, studies in this area are still limited. Earlier research in this area has mostly focused solely on the determinants of exports performance from either internal factors, external factors or both without using adequately potential mediating factors which could affect export performance. This paper develops and tests a holistic framework for SME export considering all aspects of export drivers, and inhibitors. This theoretical framework incorporates and tests three potential mediators (i.e., business strategy, export marketing strategy and innovation strategy) as well. Findings- The initial data analysis confirms and shows the significant effects of various internal and external firms’ determinants on their export performance. The final research finding have significant implications for understanding all key drivers of SME export in Qatar, and it helps policymakers and regulators to improve the current SME ecosystem in Qatar. Conclusion- The final results of this study can be extended to other emerging markets with similar economic and legal structure.

Enhancing Export Activities of Small and Medium Enterprises: A Case Study of Qatari SMEs

Although there are various benefits for SMEs to expand their businesses to international markets, there are various obstacles that discourage them to move internationally, especially in emerging markets. This study focuses on the capacity building to enhance SME export activities in an emerging market. Even though the latest literature in the area of export performance have focused on firms from the emerging countries, studies in this area are still limited. Earlier research in this area has mostly focused solely on the determinants of exports performance from either internal factors, external factors or both without using adequately potential mediating factors which could affect export performance. This paper develops and tests a holistic framework for SME export considering all aspects of export drivers, and inhibitors. This theoretical framework incorporates and tests three potential mediators (i.e., business strategy, export marketing strategy and innovation strategy) as well. This study draws on the contingency framework, resource-based view and market-based view to provide a holistic understanding of the research issue. It is based on primary data collected by survey and three main methods of descriptive statistics, confirmatory factor analysis, and structural equation modelling for quantitative analysis. The initial data analysis confirms and shows the significant effects of various internal and external firms’ determinants on their export performance. The final research finding have significant implications for understanding all key drivers of SME export in Qatar, and it helps policymakers and regulators to improve the current SME ecosystem in Qatar. Finally, the final results of this study can be extended to other emerging markets with similar economic and legal structure.

The interplay between market intelligence activities and sales strategy as drivers of performance in foreign markets

Purpose Exporting is a popular foreign market entry mode, especially among small- and medium-sized enterprises (SMEs). The success of SME exporters depends on their ability to establish and maintain profitable long-term relationships with foreign customers. This study aims to propose that the development of an effective export sales strategy can contribute greatly toward this aim. The study also demonstrates that export market intelligence generation and export market intelligence dissemination activities are important drivers of export sales strategy. Export sales strategy comprises three dimensions, which are expected to have a positive influence on export performance. Design/methodology/approach The study uses survey data obtained from 168 exporting firms based in Greece, to test a set of research hypotheses. Structural equation modeling procedures are used. Findings Findings indicate that export market intelligence generation and dissemination activities support and facilitate the development of effective export sales strategies, tailored to serve individual foreign accounts. Furthermore, all strategic dimensions of export sales strategy demonstrate significant positive effects on export performance. Research limitations/implications The research underlines the importance of incorporating export sales strategy in studies that aim to investigate the drivers of export performance. Practical implications The findings also indicate that exporting firms must actively engage in market intelligence activities to reinforce their strategic decision-making process. Originality/value The study emphasizes the crucial importance of export sales strategy in achieving superior export performance. The study provides a theory-driven conceptualization and operationalization of export sales strategy and offers an empirical assessment of a comprehensive model that includes the key antecedents and performance outcomes of export sales strategy.

Quality Upgrading and Export Performance in the Asian Growth Miracle

We explore the contribution of product-quality upgrading to the export performance of six fast-growing Asian economies: China, India, Indonesia, Malaysia, South Korea, and Thailand. We focus on measuring the impact of quality upgrading on the changes in these countries' sectoral export shares during 1970-2010. We build a multisector Ricardian trade model which allows for changes in product quality, and calibrate it to generate predictions about export volumes. Unlike previous literature, our approach allows estimation without employing domestic production data. Our results point to quality upgrading being a key driver of export shares.

Disentangling economic, social, and environmental drivers of coral-reef fish trade in Micronesia

Abstract Fisheries represent a fundamental resource linking social and ecological systems. Yet, unsustainable fishing regimes prevail across many tropical regions as a result of growing consumer demand and market expansion. Using the extensive reef-fish trade between Chuuk and Guam (Micronesia) as a case study, we examined 12 years of commercial reef-fish export data to capture both inter-annual and intra-annual trends. Reef-fish exports from Chuuk increased steadily between 2003 and 2010 fueled by increasing demand on Guam, but declined sharply from 2010 to 2014 as export costs grew and profit margins were reduced. Intra-annual examinations furthered that low winds and new moon periods were the strongest drivers of daily exports during the initial years of the study, but the governmental disbursement of food-stamp allowances on Guam became the strongest driver in later years when profit margins were lower. Seasonal cycles were also influential, as exports within each year peaked during the Catholic lent season. In sum, the Chuuk-Guam reef-fish trade industry became increasingly dependent on opportunistic demand from Guam, while environmental regimes evolved to become secondary drivers of export volume. The ability to meet foreign demand may suggest a sustainable fishery in Chuuk, however, mounting evidence suggests that consistent supply to international markets masks growing, unsustainable harvesting regimes. Dwindling profits may lead to instability in Guam’s fresh reef-fish trade industry, and also suggested uncertain futures for Chuuk fishers, Guam retailers, and a society dependent on healthy protein. We last compared the sequential expansion of Guam’s reef-fish acquisition footprint across the Indo-Pacific with expansions reported for the Hong Kong live reef food fish trade industry, highlighting the growing impacts of population centers on small-scale coral-reef fisheries as markets globalize.

Non-Price Competitiveness and Financial Drivers of Exports: Evidences from Italian Regions

The present study examines the drivers of Italian exports via an export equation with regional and time-varying impacts of local financial development. To this purpose, two-way fixed effects regression models with lagged variables and a system Generalized-Methods-of-Moments have been adopted to account for potential endogeneity problems and dynamic trade patterns. The analysis covers the period 2000–2013 and the sub-period 2000–2007. The results show that a mix of factors contributing to lift exports, including financial development, exerts a positive impact on trade flows. In particular, a rise in credit intensity and a reduction in financial risk push export propensity. The results further point to the relevant effect of non-price competitiveness factors, namely R&D and investments, in influencing the export behaviour of the Italian regions. The results hold for both the whole and the pre-crisis period, but the effects are generally stronger during the pre-crisis years.

Drivers of SMEs’ exporting activity: a review and a research agenda

Purpose The purpose of this paper is to provide a systematic and updated assessment of studies on key exporting stimuli for small and medium enterprises (SMEs) and to propose a research agenda on this topic. Design/methodology/approach The authors develop a review of empirical articles on SMEs’ exporting stimuli and outline future research directions based on key emerging drivers. Findings Research on SMEs’ exporting drivers focuses mainly on human resources’ competences, skills and subjective characteristics and on the role of relevant network actors (customers, intermediaries). Originality/value This paper provides an original contribution with regard to updating the framework on export drivers by Leonidou et al. (2007), highlighting an emerging research perspective based on internal/external network dimensions and proposing future research directions on internal individual and organisational actors and on new external network actors.

On Domestic Demand and Export Performance in the Euro Area Countries: Does Export Concentration Matter?

During economic downturns, weak domestic demand developments seem to be an additional driver of exports, as firms increase their efforts to serve markets abroad to compensate the fall in domestic sales. This may constitute an additional mechanism adjustment for the euro area countries where real exchange rate variations are limited by the common currency itself and the present low inflation environment. However, this substitution effect between domestic and foreign sales could be different across euro area members. This paper uses panel data techniques to assess the role of the export structure in explaining these differences. Building a novel indicator for product concentration, the results suggest that domestic demand developments are more relevant to explain exports in countries with a lower product concentration index (that is, more diversified exports). This contributes to explain why euro area countries under stress registered different economic performance during the most recent years.

On Domestic Demand and Export Performance in the Euro Area Countries: Does Export Concentration Matter?

During economic downturns, weak domestic demand developments seem to be an additional driver of exports, as firms increase their efforts to serve markets abroad to compensate the fall in domestic sales. This may constitute an additional mechanism adjustment for the euro area countries where real exchange rate variations are limited by the common currency itself and the present low inflation environment. However, this substitution effect between domestic and foreign sales could be different across euro area members. This paper uses panel data techniques to assess the role of the export structure in explaining these differences. Building a novel indicator for product concentration, the results suggest that domestic demand developments are more relevant to explain exports in countries with a lower product concentration index (that is, more diversified exports). This contributes to explain why euro area countries under stress registered different economic performance during the most recent years. JEL Classification: C22, E03, F10