Export Promotion Strategies Research Articles

Identifying New Product And Service Export Opportunities For South Africa Using A Decision Support Model

In the face of slow economic growth and development, and the perennial problems of unemployment, poverty and inequality, the South African government and business community have long recognised the importance of growing and diversifying the countrys tangible goods and services export sectors. One of the challenges in designing and implementing effective export promotion strategies is identifying the right markets, given South Africas ever-fluid skills, capacity and trading relationships. The Decision Support Model (DSM) is an export market selection tool that makes use of a sophisticated filtering process to sift through an extensive range of product-/service- and country-related data to reveal those product-/service-country combinations (export opportunities) that are the most realistic and sustainable. The DSM, which has been applied for Belgium, Thailand and South Africa, not only brings greater precision to the export market selection process, but also unveils opportunities that may not have been contemplated before thus supporting the quest for export diversification. This paper examines the role of the DSM for products and the DSM for services, respectively, and illustrates how, using the results from the application of these models, they herald the start of a new era in export market selection and promotion in South Africa.

The Impact of Exchange Rate Fluctuation on the Nigerian Economic Growth: an Empirical Investigation

This research study examined the impact of exchange rate on economic growth from 1986 to 2013. The main type of data used in this study is secondary; sourced from Central Bank of Nigeria Statistical Bulletin of various issues. From 1986 being the year the monetary authority shifted from fixed exchange rate regime to flexible exchange rate regime to 2013. The correlation and regression analysis of the ordinary least square (OLS) were used to analyze the data. The result revealed that exchange rate has positive impact but not significant with (? =0.014, t = 1.783, Pns) this is affirms previous studies that developing countries are relatively better off in the choice of flexible exchange rate regimes. The result also indicated that interest rate and rate of inflation have negative impact on economic growth but not significant with (? = - 0.002, t = - 0.015, Pns) and (? = -0.023, t = - 0.716, Pns) respectively. Therefore, the paper recommended that government should encourage the export promotion strategies in order to maintain a surplus balance of trade and also conducive environment, adequate security, effective fiscal and monetary, as well as infrastructural facilities should be provided so that foreign investors will be attracted to invest in Nigeria

Trade Openness and Economic Growth

This article is an attempt to examine the comparative effect of three different measures of trade openness on the economic growth in Pakistan by using more rigorous econometric techniques. Autoregressive distributed lag (ARDL) method, JJ COintegration and ordinary least square (OLS) results suggest significant positive long run relationship between export and economic growth. In contrast, total volume of trade and imports have significant negative effect on the economic growth. The addition of variables and results of fully modified ordinary least square (FMOLS) suggest that the results are robust. The Granger causality and variance decomposition analysis indicate the unidirectional causality between trade openness and economic growth. In export model, causality runs from export to growth. Whereas, in the model with total volume of trade and import, causality runs from growth to total volume of trade, and imports in Pakistan. From the findings it is concluded that the policy makers should focus on export promotion strategy to enhance the economic growth in Pakistan. Besides, efficient utilization of capital goods should be ensured and reliance on non-capital goods should be less in order to ensure high domestic production in the country.

Identifying strategic markets for South Africa's citrus exports

ABSTRACTThe article identifies South Africa's strategic citrus markets among its major export partners using three complementary methodologies. Firstly, South Africa's major markets for citrus are characterised according to a growth-share matrix to identify strategic country markets. Secondly, the paper uses an Indicative Trade Potential analysis to identify strategic markets that are high potential export countries. Thirdly, a gravity model is used to identify which strategic high potential markets are encouraging South African citrus exports. Out of South Africa's 51 major citrus export destinations, 44 countries are considered “strategic” markets. From these 44 strategic markets, 26 are high potential markets. Among the 26 high potential markets, an identified 17 countries represent the most attractive markets that possess opportunities for greater export expansion. These 17 countries can be prioritised for an export promotion strategy: six are in the EU, four are in Asia, and two are in Eastern Europe; while three are from Middle East and two from North America. The paper concludes that more aggressive trade policy efforts should also be directed towards nine countries which are “high potential markets”, but exhibit trade-inhibiting features discouraging South Africa's citrus exports. Trade facilitation efforts and bilateral agreements with such countries could be considered as an option to “lock in” the benefits of unexploited export potential in key strategic citrus export markets.

Export performance of Indian cashewnut – An analysis

The Indian Cashew industry provides employment to more than 5 lakh people both directly and indirectly, particularly in the rural areas and it thus plays a very vital role in the economy. Today nuts constitute an important part of diet in several countries of the world. In Indian cashew processing factories, over 95% of the workers are women. The total export earnings from export of cashew kernel and cashew nut shell liquid has increased from 447.80 crores in 1990–91 to 4390.68 crores in 2011–12. India is facing tough competition from Vietnam and Brazil in the exports of Cashew Kernels. The NPC for the period 2004 under exportable hypothesis was 0.98, which also revealed that the domestic prices received by the farmers were lower than the international prices, which also implied that the domestic producers were disprotected or rather taxed compared to a situation prevailing under free trade condition. USA was one of the most stable countries among major importers of Indian cashew kernel as indicated by the high retention probability of 70.49%. India could not retain the previous export share to Singapore. The major competitors for India in the world market are Vietnam, Brazil, Indonesia and Tanzania. A dependency on one or two export market would increase the trade risk in the near future. Hence, appropriate export promotion strategies are to be evolved to diversify the geographical concentration.

An Investigation of Sectoral Comparative Advantage of Botswana

The paper investigated sectoral comparative advantage of Botswana. Machinery/electric sector tops inter-sectoral comparative advantage in Botswana. It is followed by the textiles sector. The least in terms of comparative advantage is foot wear/head gear sector then followed by raw hides, skins leather and furs sector. The sector which tops in Botswana in comparative advantage, is not necessarily the one that tops in export value. Diamonds which dominate Botswana’s exports fall in the stone/glass sector and the sector possess less comparative advantage than other sectors ahead of it. It is recommended that Botswana should be promoting other products also other than diamonds in the international markets. That Botswana enacts a focused export promotion strategy on sectors which possess comparative advantage. Botswana should continue providing enabling environment that can lead to inflow of foreign direct investment through transnational corporations with technology that can improve sectoral comparative advantage.

Inter-Sectoral Comparative Advantage of Tanzania and Impact on International Purchasing

The authors have analyzed inter-sectoral comparative advantage of Tanzania and impact on international purchasing. Comparative advantage fairly exists in some sectors in Tanzania. Comparative disadvantage also exists mainly in the foot wear/head gear and transportation sectors. The sectors with high numbers of products have positive impact on international purchasing as they can be a competitive source to procure from. As the case may be, there is still a room in Tanzania to improve on competitiveness. It is recommended that Tanzania comes up with sectoral policies that can enhance competitiveness further. It is also recommended that a more focused export promotion strategy be promoted. Attracting foreign direct investment especially trans-national corporations can assist Tanzania to improve on its competitive advantage mainly through technology transfer.

Economic Analysis of Processing of Guava (Psydium guajava L.) in Uttar Pradesh State of India

A study was conducted to analyse the economics of guava processing with the objectives of estimating benefit cost ratio, capacity utilization, cost of processing, price spread, marketing efficiency and constraints faced by guava processors in processing of guava in Allahabad district of Uttar Pradesh (U.P.) India. The processing of fresh guava was undertaken only by 10 units (processing firms) in the study area, so all the 10 units were evaluated for the present study. The processing units included cottage scale (03), small scale (05) and large scale (02). The study revealed that returns per rupee invested in cottage scale units, was calculated as 2.74 in making jelly and 2.99 in jam; for small scale units, it was 2.28 in jelly, 2.43 in jam and 1.89 in toffee; and for large scale units, the returns per rupee invested were 2.52 in the manufacture of jelly, 2.82 in jam and 2.01in toffee. As far as capacity utilization is concerned, the large scale units utilized 92.16% of installed capacity followed by cottage scale units with 86.73% and small scale with 79.89% capacity utilization, respectively. The cost of processing per quintal of guava was found to be Rs.176.60 (cottage scale), Rs.195.58 (small scale) and Rs.222.90 (large scale). Major problems faced by processors were non-availability of skilled labours, lack of capital, setting of guava products and degree of competition, etc. It could be concluded from the study that guava processing was an economically viable entrepreneurial activity and provided ample opportunities for employment generation particularly for the local youth, and also earning much required foreign exchange. This could be possible provided the government functionaries and concerned agencies take steps towards strengthening infrastructural support for a better marketing mechanism to be in place, and introduce export promotion schemes to boost the processing industry, given its competitive advantage. Efforts need to be made to encourage local unemployed youth to opt for guava processing as their livelihood source, by providing training and financial support to them.

Improving 'National Brands': Reputation for Quality and Export Promotion Strategies

This paper studies the effect of firm and country reputation on exports when buyers cannot observe quality prior to purchase. Firm-level demand is determined by expected quality, which is driven by the dynamics of consumer learning through experience and the country of origin's reputation for quality. We show that asymmetric information can result in multiple steady-state equilibria with endogenous reputation. We identify two types of steady states: a high-quality equilibrium (HQE) and a low-quality equilibrium (LQE). In a LQE, only the lowest-quality and the highest-quality firms are active; a range of relatively high-quality firms are permanently kept out of the market by the informational friction. Countries with bad quality reputation can therefore be locked into exporting low-quality, low-cost goods. Our model delivers novel insights about the dynamic impact of trade policies. First, an export subsidy increases the steady-state average quality of exports and welfare in a LQE, but decreases both quality and welfare in a HQE. Second, there is a tax/subsidy scheme based on the duration of export experience that replicates the perfect information outcome. Third, a large reputation shock is self-fulfilling when the economy has multiple steady states. Finally, a minimum quality standard can help an economy initially in a LQE moving to a HQE, but is not necessarily welfare improving.

Non-Oil Exports in the Economic Growth of Nigeria: A Study of Agricultural and Mineral Resources

Exports have been described as catalysts for overall development and increase the earnings of the country thereby creating an avenue for growth by raising the national income of the country. Since the importance of foreign income cannot be over-emphasized, this study therefore examines the performance of non – oil exports over the years as well as the reason for that pattern and level of performance. The study evaluates the performance of Nigeria’s export promotion strategies as to whether they have been effective in diversifying the productive base of the Nigerian Economy from Crude oil as the major source of foreign exchange. The study runs from 1981 through 2010. Findings from the study reveal that non – oil exports have performed below expectations giving reason to doubt the effectiveness of the export promotion strategies that have been adopted in the Nigerian Economy. The study reveals that the Nigerian Economy is still far from diversifying from crude oil export and as such the crude oil sub – sector continues to be the single most important sector of the economy. The study made some recommendations for diversification to be achieved and for enhancing the productivity and output of non –oil commodities as well as providing markets for the commodities. DOI: 10.5901/jesr.2013.v3n2p403

Exports as an Engine for the Economic Growth: The Case of Romania

This paper explores the dynamic relation between the exports and the gross domestic product from Romania. We employ the Johansen cointegration procedure and the Granger causality test to identify the interactions between the two variables. We find no cointegration but a unidirectional causality from exports to gross domestic product. We conclude the implementation of an export promotion strategy could be a solution for the Romanian national economy to surpass the actual severe recession.

GROWTH AND EQUITY IN CHINA: PATTERN, CAUSES AND CHALLENGES

Many factors have shaped the current pattern of growth and equity in the People's Republic of China (PRC). Among them are the foundations laid before 1978, especially in respect of land-related institutions and social sector investments. These successfully complemented the PRC's subsequent export and FDI promotion strategies. In the forthcoming decades, it will be important for the PRC to expand its domestic demand, improve on income distribution, and increase social sector investments. Greater social protections, higher wages and increased public spending on education can all help the PRC to meet these challenges to ensure sustained economic growth and development.

An Industrial Organization Approach to the Study of Export Intensity: Strategic Market Interactions and Export Intensity

In developing countries characterized by relatively small domestic markets, local firms may have to internationalize in order to realize their growth potential. Despite the formidable challenges that may accompany the internationalization process, globally-oriented managers and domestic policymakers may effectively craft coherent export-promotion strategies and policies, respectively, if they have a solid understanding of the determinants of export performance. While the empirical export performance literature in the field of international business (IB) has the potential to contribute towards this end, it appears to be hampered by a paucity of rigorous theoretical frameworks. In the virtual absence of a well-articulated direction on how to fill this theoretical void, this paper makes a case for the application of industrial organization (IO)-based modeling in this line of research. It formulates a model of exporting in the context of market structures characterized by a monopoly, and a (symmetric linear) Stackleberg duopoly with price discrimination. Under this theoretical framework, it is found that the Stackleberg leader has an export intensity of zero, while the Stackleberg follower has an export intensity of one-half. But at an export intensity of two-thirds, the price-discriminating monopolist has the largest export intensity. These analytical results provide insights into the so-called “industry effects” phenomenon that has been noted in empirical export performance studies, and strengthens the theoretical argument for the conventional use of industry-dummy variables to control for hypothesized industry effects. More generally, this paper signals a potentially fruitful direction for IO-based modeling in the extant empirical export performance literature.

Do High‐technology Exports Cause More Technology Spillover in China?

AbstractThe volume of China's high‐technology exports has grown sharply since the implementation of its export promotion strategy “Revitalizing Trade through Science and Technology” in 1999. This paper investigates whether technology spillover effects are greater for high‐technology exports than for primary manufactured goods exports. We present a generalized multi‐sector spillover model to identify both between‐spillover effects from exports towards non‐exporters and within‐spillover effects among export sectors. Using panel data for 31 provinces in China over the period from 1998 to 2005, we find that although high‐technology export sectors have higher productivity compared with other sectors, this productivity advantage does not lead to technology spillover to both domestic sectors and other export sectors, and export technology spillover mainly derives from traditional export sectors rather than high‐technology export sectors. As such findings can be largely attributed to the fact that China's high‐technology exports depend significantly on processing trade by foreign‐invested firms, policy implications are discussed in relation to how to best promote the role of China's high‐technology exports during economic expansion.

Export Promotion Strategy and Performance: The Role of International Experience

This study examines how international experience shapes managerial judgment in the formation of effective export promotion strategies. Drawing from contingency theory and the organizational learning perspective, the authors develop and test a model of the effects of different forms of international experience—duration, scope, and intensity—on the performance outcomes of promotion adaptation. Using data from 336 export ventures, the authors find that promotion adaptation relates positively to performance when duration is short and intensity is low, but there is a nonsignificant moderating effect for scope. However, the subsequent analysis suggests that scope, together with sociocultural distance and promotion adaptation, exerts a complex three-way effect on export performance, highlighting the need for more research attention in this area.

Export Promotion Strategy and Performance: The Role of International Experience

This study examines how international experience shapes managerial judgment in the formation of effective export promotion strategies. Drawing from contingency theory and the organizational learning perspective, the authors develop and test a model of the effects of different forms of international experience—duration, scope, and intensity—on the performance outcomes of promotion adaptation. Using data from 336 export ventures, the authors find that promotion adaptation relates positively to performance when duration is short and intensity is low, but there is a nonsignificant moderating effect for scope. However, the subsequent analysis suggests that scope, together with sociocultural distance and promotion adaptation, exerts a complex three-way effect on export performance, highlighting the need for more research attention in this area.

Café Coffee Day (CCD): A Case Analysis

The coffee market in India has been growing due to the demand for ready to drink coffee and has become a part of an individual’s daily consumption basket. Due to changing cultures, consumers are becoming aware of domestic and foreign brands, which are boosting the consumption levels. The export promotion schemes and other subsidies by the GOI, and increasing trend of eating out coupled with the rising share of young population has driven the market. Well-established coffee shop chains, such as Cafe Coffee Day (CCD) and Barista, enhanced their pan-India presence in the latter part of the review period. In 2010, Cafe Coffee Day and Barista had 970 and 200 stores, respectively, and they aim to continue expanding in the next few years. Meanwhile, several relatively new players, such as Costa Coffee, Coffee Bean, Gloria Jean’s and Java Coffee, are trying to establish a footing in Indian coffee retailing. Both these factors drove on-trade consumption of fresh coffee beans in 2010, with volumes growing by 12%. On-trade sales have emerged as the primary sales channel for fresh coffee beans, in the absence of any appreciable off-trade consumption.

A Study on the Export Promotion Strategy using SEM(Search Engine Marketing)

A Study on the Export Promotion Strategy using SEM(Search Engine Marketing)

Export Promotion and the Global Economic Crisis. Experiences and Lessons for Nigeria as a Mono-product Economy

The importance of export promotion and marketing cannot be overemphasized. This is because of the attendant economic flow into the home country. Because of these benefits, Nigeria as a sovereign nation has been involved in exportation of goods and services. After forty-nine years of independence, Nigeria's export drive has failed to yield the expected economic benefits to the country. The export promotion policies of the government appear to be ineffective. This paper highlights the export promotion and marketing problems in Nigeria and the lessons therein. The paper contains recommendations that authors believe would produce result-oriented export promotion strategies and a strong and healthy economy in the face of the current global economic crisis.

A Study on Export Promotion Strategy to Foreign Government Procurement Markets for Korean Firms

A Study on Export Promotion Strategy to Foreign Government Procurement Markets for Korean Firms