Export Market Diversification Research Articles

Dampak Pandemi Covid-19 Terhadap Kinerja Ekspor Cengkeh Indonesia

Even though during the Covid-19 pandemic in 2020 the exports of the agricultural sector increased, at the beginning of 2021 the plantation sector again experienced a decline. This is due to the disruption of the distribution system at the local, domestic and international levels. This also affects the prices of plantation commodities, one of the plantation products that has experienced a decrease in price is cloves. The aim of this study is to determine the factors that influence the performance of Indonesian clove exports. Data analysis used the Gravity model with the eViews 9 tool. The data used came from UN Comtrade. The results of the study are that the factors that have a positive effect are Indonesia's GDP, destination country's GDP, population, the covid pandemic and production. This means that every 1% increase will affect the increase by the number of coefficients. It can be concluded that the covid pandemic did not have a negative impact on Indonesia's export performance. Following are some of the implications that may occur after the COVID-19 pandemic has passed: global demand recovery, trade policy adjustments, changes in consumption patterns, focus on quality and sustainability, digitalization and e-commerce, export market diversification, risk management.

Export market relatedness, geographical diversification and regional export growth in China

Existing literature found both positive and negative relationship between geographical diversification and economic performance. Our research helps reconcile such contradictory results, and stresses that such conflict is associated with relatedness between export markets. Using China's custom data, we show that having diverse related export markets facilitates regional export growth due to knowledge spillovers among manufacturers and economies of scope for trade intermediaries. Having many unrelated export markets, however, has a negative impact on regional export growth, as it dilutes valuable resources. Furthermore, we highlight the role of trade intermediaries, which have been less studied than manufacturers in literature on export market diversification.

Can Export Market Diversification Mitigate Agricultural Export Volatility? A Trade Network Perspective

ABSTRACT Using the social network analysis (SNA) method to calculate the level of agricultural export market diversification in various countries, this study examined the impact of agricultural export market diversification on export volatility from the supply network perspective based on HS6-digit agricultural export data. We identified that the agricultural export market diversification significantly reduces the export volatility. Specifically, the effect of diversifying the export market of processed agricultural products in stabilizing export volatility is greater than that of primary agricultural products. The stabilizing effect of emerging markets and developing countries or regions is more evident than developed countries or regions. Moreover, the export market diversification can stabilize the volatility of agricultural exports through two mechanisms: increasing the international market share and extending the export duration.

Temporary extra-regional linkages and export product and market diversification

ABSTRACT While considerable attention has been paid towards how some long-lasting extra-regional linkages such as foreign direct investments facilitate interregional knowledge transfer, less is known about the role of temporary extra-regional linkages formulated via trade fairs. This paper seeks to fill this gap by focusing on the China Import and Export Fair and examining the relationship between temporary extra-regional linkages forged by trade fairs and regional export dynamics. In doing so, we also speak with the literature on ‘temporary clusters’. Our second contribution is to differentiate export market and product diversification, and to show distinct effects of temporary extra-regional linkages on those two.

The effects of trade intermediaries on firms’ export market diversification: Evidence from China

The effects of trade intermediaries on firms’ export market diversification have not been explored sufficiently. Inspired by some evidence of trade intermediaries, we argue that they can positively and negatively affect firms’ export market diversification. They can facilitate market entry by transferring knowledge. However, they also deter firms’ market entry by setting up discriminatory market barriers. Using a merged dataset from Chinese Customs Trade Statistics (CCTS) and China’s Annual Surveys of Industrial Firms (ASIF), we identify the mixed effects of trade intermediaries.

K2 전차 흑표의 수출시장 다변화를 위한 수출경쟁력 평가 지표의 가중치 산정에 관한 연구

Considering that the K2 tank black panther tank export contract with Poland in recent days is a prime mover to advanced defense countries, it is a point of great interest for the future. The K2 tank black panther tank shows the highest export performance as a single type among Korea’s main export weapon systems. In addition, the localization rate of parts and production is very high, so stable supply chain management is also possible. To diversify potential export markets, it is necessary to evaluate the factors that enhance the export competitiveness of the K2 Black Panther from multi-dimensional perspective. This study is to recognize the potential export market diversification through export competitiveness analysis in Porter’s five forces perspective of the K2 black panther tank. Analytic Hierarchy Process(AHP) method was used in considering the factor’s weights. The survey of 14 members who participated in DAPA(Defense acquisition program administration), KRIT(Korea research institute for defense technology planning and advancement), and academic experts. The result of this study showed that the Consistency Ratio was under 0.1 in evaluation items and factors. This study implies a conceptual framework for evaluating the export competitiveness of the K2 tank black panther and provides a guideline for strategic priorities of K2 black panther on export competitive improvement factors.

Rethinking export diversification to stimulate resilience against future economic shocks in Sub-Saharan Africa

The literature suggests that export diversification is growth-inducing, particularly in developing countries. However, Sub-Saharan Africa has been experiencing deteriorating or insignificant economic growth levels. The region’s exports are highly concentrated; thus, this paper sought to examine the extent of export diversification and its effect on economic growth in Sub-Saharan Africa (SSA). Further, the paper assessed the presence of a U-shaped hypothesis in the context of SSA. The GMM approximation technique was adopted to examine the model’s relationship and control for endogeneity. The results suggest that export concentration significantly hampers economic growth. The results further indicated that foreign direct investment, domestic investment, and trade openness stimulate growth – while weak governance, fluctuating exchange rates and trade policy also adversely affect economic growth. However, the results do not support a hump-shaped (non-linear) correlation between export diversification and economic growth in SSA. To fully recover from the global pandemic and attain higher levels of economic growth, the Sub-Saharan African region needs to implement policies that allow export products and market diversification. While diversification is crucial for development, improving the quality of governance should also be a prerequisite, given that weak governance may interfere with ratifying appropriate and relevant policies aimed at facilitating export diversification.

Trade policy uncertainty, development strategy, and export behavior: Evidence from listed industrial companies in China

On the basis of new structural economics theory and heterogeneity of firm viability, this study analyzes the effect of trade policy uncertainty on firm export behavior using panel data of Chinese listed companies in the industrial sector. Empirical results show that the high uncertainty of trade policy significantly inhibits the extensive and intensive margins of firm export, while heterogeneity effect occurs across firms with different levels of viability. The development strategy that violates comparative advantage strengthens the negative impact of trade policy uncertainty on firm export. Despite their correlation with viability, the type of ownership, total factor productivity, and long-term loan are not suitable proxies for firm viability. Under high uncertainty of trade policy, export market diversification can alleviate the restraining effect of development strategy on firm export, whereas firms in regions with high industrial-oriented development tend to be vulnerable to cost shocks, thus reducing export market diversification. Findings present important implications for emerging market countries to enact better international trade and economic policies.

Export behaviour of firms in India: does gender of the firm owner matter?

PurposeThe purpose of this study is to investigate the impact of the gender of the firm owner on the export behaviour of firms in the Indian context.Design/methodology/approachThe present study utilizes the data from World Bank’s Enterprise Survey. The survey provides information on 9,281 firms located in different regions in India. Binomial logistic regression is employed to examine if the owner’s gender matters for the firm’s export-related decisions (export propensity, export mode, export intensity and export market diversification) as a direct or moderating factor controlling for other possible determinants of export activity.FindingsThe findings of the study reveal that firms with a majority of female ownership are less likely to export. However, once the firms indulge in exports, their choice of export mode and export intensity is not affected by the owner’s gender. The gender of the firm owner plays an important role in export market diversification as it is observed that the firms owned by the majority of women have concentrated export markets.Practical implicationsThe findings advocate the integration of gender perspective into export promotion policies in India. In light of the findings that the gender of the firm owner entails a heterogeneous impact on different dimensions of export, the key areas requiring policy interventions are female entrepreneur’s export participation and export market diversification.Originality/valueThis study augments the previous scholarship by focusing on the intersection of the gender of firm owner and export propensity along with other unexplored dimensions of export behaviour in female entrepreneurship literature viz. mode of export, export intensity and export market diversification.

Dynamic Analysis On Export, FDI and Growth in Indonesia: An Autoregressive Distributed Lag (ARDL) Model

This study aims to test the export-led-growth (ELG) hypothesis in Indonesia after the implementation of trade liberalization and analyze the relevance of policies that can be taken by the government. The data used in this study is time series data from 1970- 2020. The analysis method of this research uses the Autoregressive Distributed Lag (ARDL) model by applying three models. Model 1 shows that in the short term the ELG hypothesis is proven valid but in the long term the ELG hypothesis is invalid in Indonesia. This is reinforced in model 2 in both of short and long term that real GDP is insignificant to real exports. In the long term, model 2 shows that real exports have a positive effect on FDI and vice versa in model 3 that real GDP has no effect on FDI. The implementation of the results illustrates to policy makers that strong economic growth can attract export capabilities in Indonesia, but policies that are based on economic growth have vulnerabilities to global dynamics that can affect export activities and the investment climate in Indonesia, so export market diversification policies need to be implemented to be able to reach a wider market. From the investment side, it is necessary to carry out structural reforms (such as policies, financial systems, and infrastructure development) so that there is certainty for foreign investors to invest in Indonesia.

Effects of related variety and unrelated variety on China’s export market diversification

Effects of related variety and unrelated variety on China’s export market diversification

The impact of export dynamics on trade balance in emerging and developed countries: An evaluation with middle income trap perspective

In this study, it was analyzed whether the export dynamics affected net exports in fourteen emerging countries and eight developed countries between the years of 1995–2019. Export sophistication, export product diversification, export market diversification, export product concentration, export market concentration, and real effective exchange rate were used as the proxy of export dynamics. Panel data methods that take into account cross-section dependency and structural breaks were used for the analysis. As a result of the study, in developed countries, it was concluded that export sophistication, export product concentration, and export market diversification positively affected the net export, and the real effective exchange rate negatively affected the net export. For the emerging countries, it was concluded that export market concentration and real exchange rate negatively affected the net exports. Also, in emerging countries, it was found that export sophistication and export product diversification do not have any impact on net exports since export sophistication and export product diversification are not an adequately high level compared to developed countries for increasing the net export. The fact that in these countries the proportion of high-tech product exports are low in total exports and the product range in exports are not wide cause these indexes to be low. This situation poses a significant risk in terms of falling into the middle-income trap.

E-platform use and exporting in the context of Alibaba: A signaling theory perspective

Despite the prominent role played by B2B electronic platforms (E-platforms) in assisting exporters, extant research pays scant attention to how, and under what conditions, exporters can deploy B2B E-platforms to enhance their sales performance. Drawing on signaling theory, we examine how the deployment of E-platforms affects export sales performance via foreign buyer contact. We also explore the moderating roles of institutional environment and export growth strategy. We test our model with a dataset composed of a survey and archival data on Chinese exporters that subscribe to Alibaba.com. The findings indicate that E-platform use positively affects foreign buyer contact and, in turn, export sales performance. This positive effect is even more substantial when exporters originate from regions with less-developed market intermediaries or when the institutional distance between the home and host countries is greater. In contrast, this effect becomes weaker when the level of export market diversification or product diversification is higher.

U.S Agricultural Export Competitiveness and Export Market Diversification

This paper examines the structural relationship of foreign GDP growth, real exchange rate volatility, and the impact of exogenous shocks on U.S. agricultural export growth. The intertemporal dynamics of export demand are analyzed within the structural cointegrating vector autoregressive framework. We find that: (1) An increase (decrease) in importing countries’ trade-adjusted GDP leads to an increase (decrease) in U.S. agricultural exports; (2) A real appreciation (depreciation) of the U.S. dollar results in a decline (increase) in U.S. agricultural exports; (3) Exports of high-value processed agricultural products are more sensitive to changes in foreign income and exchange rate fluctuations than exports of low-value grains and bulk commodities; (4) In response to exogenous shocks, deviations from the predicted equilibrium level of exports adjust at a much faster rate for exports of grains and other bulk commodities than high-value products; and (5) The present concentration of U.S. agricultural commodity exports to a few developed countries is increasingly problematic, and U.S. agricultural exports may benefit not only from policies intended to increase trade with existing developing country importers but also from policies that aim to export agricultural commodities to emerging markets. The paper not only highlights the importance of including the long-run relationship when modeling short-run dynamics in agricultural trade models, but is also the first to use this method to comprehensively estimate macroeconomic linkages of U.S agricultural exports, simultaneously across a number of agricultural products, importing countries, over a period of five decades.

The Determinants of Indonesia’s CPO Export in Non – Traditional Market

Countries in Europe, China and USA are the main destination of Indonesia's CPO exports so that in order to avoid more significant declining in value and export volume because of trade war and the existance of CPO black campaign, Indonesia must take a diversified step, especially for export market diversification. This study illustrates the condition of Indonesian CPO competitiveness in non-traditional markets, measures the position of Indonesia CPO export market attractiveness, and analyzes factors influence CPO exports. Data used are secondary data obtained from various resources. The time series and cross sections data consecutively consist of variables from 2002 to 2017 and 11 nontraditional importing countries. Time series variables consist of volume export of Indonesia CPO, exchange rate, export price, Indonesia GDP, importers GDP, and economic distance. X–model product export potential and gravity model were used to address the objectives. Indonesian CPO has optimistic market development potential because Indonesia CPO has strong competitiveness and in a rising star position.The analysis result with gravity model showed the factors affecting Indonesian CPO export to nontraditional countries was exchange rate, Indonesia GDP, importers GDP, and economic distance. Government role is important to initiate a long term trade agreement which benefits both parties.

Empirical Research on the Influence of Export Market Diversification on Total Factor Productivity:Based on the Perspective of Trade Protection

This paper mainly explores the impact of export market diversification as an important measure to deal with trade friction on firms total factor productivity. Firstly, this article focuses on the theoretical analysis of the impact mechanism, including risk diversification, reversal effect and spillover effect. Based on the sample data of Chinese manufacturing export enterprises from 2000 to 2007, this paper conducts an empirical test on the relationship between export market diversification and total factor productivity. The result indicates that export market diversification has a significant positive effect on the total factor productivity of enterprises. After considering the endogenous problem, by controlling the fixed effects, using the two-stage least square method and changing the duration of the sample for robustness analysis, the results are still consistent. In addition, the role of diversification policy in total factor productivity presents heterogeneous characteristics in terms of different types of enterprise ownership, export intensity, industry competition, trade methods, and the development degree of exporting market. Accordingly, this paper puts forward corresponding policy recommendations.

Networks of export markets and export market diversification

Abstract In the era of globalization, policy makers in both developing and developed countries have sought to expand their export destinations, with the expectation that export market diversification can boost export upgrading and economic development. Although extant literature has confirmed that exporters search for new markets in two distinct ways: direct search underpinned by the gravity effect and remote search driven by the extended gravity effect, it has not advanced very far due to the lack of adequate measures of those effects. This article presents a technique that uses available export data to develop measures of those two effects that capture a larger range of factors and thus allow us to more easily predict export market diversification. Our new indicator also simplifies the prediction by combining gravity and extended gravity effects. Empirical results show that the explanatory and predictive power of our new method is better than that of the traditional one based on gravity and extended gravity models.

The Impact of Industry 4.0 on Export Market Orientation, Market Diversification, and Export Performance

Abstract Background and Purpose: Existing literature on the Industry 4.0 concept does not provide a clear empirical verification if and how the implementation of Industry 4.0 impacts export market orientation, market diversification, and export performance of firms. The purpose of this paper is to provide a framework on how firms can increase their export performance by knowing the impact of Industry 4.0 on firms’ export activities. Methodology: The analysis is based on an examination of 81 Slovenian export firms, with the majority active in the processing industry in which the export of products and services represents a more than 20% share in the total revenue of the firm. Factor analysis and multiple regression were used to process the collected data. Results: The analysis results reveal that firms that invest in advanced technologies and realize digital transformation are better prepared to compete internationally and achieve better export performance. Conclusion: Our study showed the positive link between implementation of Industry 4.0 and export activities of firms and confirmed that implementation of Industry 4.0 leads to many changes in the mindset and operation of Slovenian firms and actively reflects in their export results. The research findings may serve as an important guide for managers in the optimal planning and management of export marketing and business activities. The study thus provides a foundation for the growing research on the relationship between Industry 4.0 and export business activities of firms.

Economic Integration and Network Trade: A Comparison of East Asia and the European Union

The emergence of production networks has changed the structure of international trade, which is characterized by a large share of intra-regional trade flows and a rising value of intermediate goods trade or network trade between countries within the same region. This paper investigates the change in impact of trade determinants with the formation of regional production networks. At the global level, the results show that intermediate goods exports are more sensitive to trade barriers than total goods exports. At the regional level, the comparison reveals that, despite the efforts directed toward export market diversification in East Asia, the region is still more dependent on other regions’ economic conditions than the European Union is.

Sectoral and spatial patterns of Chinese cities’ export structures

ABSTRACTIn the light of evolutionary economic geography, a city’s export structure can reflect its capacity. Based on China’s export data during 2001–2011, this paper examines the evolution of 338 Chinese cities’ export structures, and their spatial patterns and product dynamics. By employing hierarchical clustering analysis and new indicators to measure Chinese’s export product and destination structures, this paper shows that regional disparity in terms of export product and destination structures exists. More importantly, the evolution of Chinese cities’ export structure is co-shaped by the process of convergence and divergence. We argue that regional disparity can be alleviated by reducing market segmentation and facilitating inter-city knowledge spillovers. Furthermore, the export product structures of Chinese cities are highly correlated with their export destination structures, indicating that export promotion policies should take into account both export product diversification and export market diversification.