Export Performance Of Firms Research Articles

Impact and mechanism analysis of industrial robot imports on export performance of Chinese firms

Digital import trade is of great practical significance for enhancing the export performance of enterprises and preventing external shocks. This paper empirically examines the impact and mechanism of industrial robot imports on Chinese firms’ export performance based on Chinese microenterprise data from 2004 to 2014. The study shows that the application of imported robots can significantly improve firms’ export performance, and this conclusion still holds after a series of robustness tests. Heterogeneity analysis shows that imported robots have a more significant role in boosting the export performance of state-owned enterprises and enterprises in capital- and technology-intensive industries; at the same time, they have a significant effect on the export performance of enterprises in different modes of trade; and they have a significant role in boosting the export performance of enterprises in eastern China compared with those in central and western regions. Mechanism analysis shows that the enhancement of export performance of enterprises by imported robots is mainly realized by promoting enterprise productivity and human capital efficiency. The policy implication of this paper is that in the era of digital trade, Chinese enterprises should fully utilize the import of digital products to enhance their productivity and promote the high-quality development of foreign trade.

Command thy blessing from above: vertically delegated carbon reduction targets and firm export performance in China

Command thy blessing from above: vertically delegated carbon reduction targets and firm export performance in China

Information infrastructure construction and firm export performance in China

This paper examines the causal relationship between information infrastructure construction and firms’ export performance. Adopting the "Broadband China" strategy as a quasi-natural experiment, we conduct a difference-in-differences estimation to demonstrate that the implementation of information infrastructure construction is a significant contributor to firms' export performance, an effect that withstands extensive robustness tests. We identify three main channels through which information infrastructure construction promotes firms' export performance: facilitating digital transformation, expanding firm production scale, and enhancing firm supply chain management capabilities. Particularly, the export response to information infrastructure construction is stronger for manufacturing firms, high-tech firms, and those firms with abundant human capital. Given significant ongoing information infrastructure investment in many emerging countries, this result provides important new information on the impacts of information infrastructure construction on exports.

Capital market liberalization and firm export performance: evidence from China’s Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programmes

ABSTRACT Using a quasi-natural experiment method, this study examines the effects of the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect (SHKS) programmes on Chinese listed firms’ export performance. We find that the SHKS positively correlates with firms’ export performance, enhances export capacity, and affects export binary margins. The SHKS influences export capacity and binary margins by improving production efficiency, promoting R&D, and easing financing constraints. Finally, the positive effects of the SHKS are particularly pronounced for state-owned enterprises (SOEs), manufacturing firms, and highly financialised firms. These findings contribute to a deeper understanding of the impact of China’s ongoing capital market liberalization on listed firms’ export performance, providing valuable insights for policymakers.

Supportive Policies of Government as the Drivers of SMEs’ Export Performance: A Study in Ho Chi Minh City, Vietnam

The Vietnamese government has advocated developing an export-based economy. In fact, the Prime Minister issued Decision No. 2471/QD-TTg dated December 28, 2011, approving the strategy of import and export of goods for the period 2011 to 2020, with a vision to 2030 formulating policies on development of logistics services, credit, and investment to develop export production, and customs clearance places for import and export goods. That fact prompted us to conduct the research investigating the impact of export support policies on export performance of firms locating in Ho Chi Minh City. The combination of qualitative and quantitative research method was applied. The netnography method and in-depth interview were used to explore support policies influencing export performance, and found Tax Incentives, Credit Incentives, Trade Promotion Support, and Custom Procedures Reform are four policies significantly explaining firms’ export performance. To measure the impact of these policies on export performance, we surveyed 141 firms in HCMC. The quantitative study confirmed that four policies impact positively significantly on export performance. The best explanatory factor is Trade Promotion Support, the second is Customs Procedure Reforms, followed by Tax Incentives. Credit incentives have the lowest effect on export performance. The findings asserted the positive effectiveness of policies promoting export performance implementing in Vietnam, and provided empirical evidence to support institutional theory.

The “Matthew effect” in rebates: How does VAT rebates allocation affect firm export performance

Changes in Value-Added Tax (VAT) rebate rates affect exports. This paper shows, when financially strapped, the timely and efficient allocation of rebates becomes essential. Using a unique panel of Chinese firms with export and rebates information, we show that delay in rebates has negative but unequal effects on firm exports. Delays in rebates also cause more exit and reduce the product scope. Furthermore, we find a “Matthew effect” in allocating rebates: exporters with tighter financial constraints respond more elastically to a delay in rebates, yet they are also more likely to have a higher delay ratio. Thus, reducing rebates delay to the most constrained firms is more effective than a similar reduction to the least constrained firms. In partial equilibrium, correcting the misallocation in rebates would increase Chinese exports by 35%, while eliminating rebates delay would increase exports by 52%.

The Impact of the Banking Sector and Its Heterogeneity on the Scale and Quality of China's Exports

Abstract: Using data of export transactions and the regional distribution of banking branches in China, this article examines the effect of bank development on the export scale and quality of firms. The results show that these factors are significantly enhanced by bank development. Compared to large state-owned commercial banks and rural financial institutions, the development of city commercial banks and joint-equity commercial banks has a more significant impact on improving the export scale and quality of firms. This article also examines the channels through which bank development benefits the export performance of firms. Indeed, bank development significantly increases firms' access to credit and reduces their credit costs, leading to improved export performance. These findings have important implications for financial development and export upgrading.

Renewable energy use and export performance of manufacturing firms: Panel evidence from six industries in India

We measure renewable energy intensity and examine its impact on export performance of Indian manufacturing firms from six industries over the panel period 2011–2021. Contrary to the negative impact of renewable energy use on export performance in macroeconomic studies, our firm-level panel analysis suggests that the impact of renewable energy usage on export intensity could differ from industry to industry. We use both system dynamic panel estimation and fixed effects with Driscoll and Kraay standard errors to correct for cross-sectional dependence. Under both the methods, our results suggest to the positive impact of renewable energy usage on export intensity in most of the industries analysed. However, the magnitude of effect differs from industry to industry. This has heterogeneous implication for energy policy for different industries. Use of renewable energy especially in hard-to-abate sectors will need special attention by the governments and policymakers in India.

New Trade Protectionism Response to COVID-19: An Investigation on Firm Export Performance in an Emerging Country

Purpose - Given the significance of concerns raised about the global shift toward protectionism under trade policy uncertainty context, and echoed by requests to contribute to issues that concern a wider variety of stakeholders, this study aims to review new trade protection measures in response to the pandemic crisis and their effects on export performance from an emerging country’s exporters.
 Design/Methodology/Approach - Research data were gathered by surveying 613 export managers of different types of exporters in Vietnam from a list of exporters provided by Ministry of Industry and Trade, and then applied a regression model for analysis.
 Findings - The study demonstrated a negative relationship between firm export performance and six trade protectionism measures, including industrial subsidies, public-procurement restrictions, FDI restrictions, standards protectionism, green protectionism, and regional integration. Only restrictions on migrant workers had no appreciable impact on firm export performance. Additionally, only employee number, out of the three control factors, significantly and positively affected how well firms succeed in exporting.
 Research Implications - The study’s findings have significant ramifications and contributions to theory and practice in international trade for an emerging country to overcome new trade protectionism measures. To support firms in expanding export markets, the government of an emerging country should concentrate on establishing and developing policies to support exporters, especially small and medium enterprises. Firms should pursue a sustainable export strategy in light of the emergence of new trade protectionism in significant import markets.

Inter-Firm Collaboration and Export Performance: A Mediation Analysis

This study aims to encourage small and medium-sized enterprises to collaborate to enhance export rate. It investigates the influence of inter-firm collaboration on industry export performance and how this relationship is mediated by firm export performance in SMEs of Pakistan. Data was gathered using a quantitative technique based on questionnaires distributed among 491 owners and employees of the SMEs involved in exports. Data were analyzed using AMOS to determine the relationship among variables; firm export performance, inter-firm collaboration and industry export performance. Mediation analysis was tested using Baron and Kenny’s procedure. Results revealed that inter-firm collaboration is an important factor in enhancing industry export performance and this relationship is significantly mediated by firm export performance. Industry export performance is an essential element for SMEs survival and growth. The study contributes theoretically and empirically by analyzing the role of interfirm collaboration in economic development and provides important implications for owners, managers, policymakers of SMEs, and export-related government agencies on improving cooperation.

Heterogeneity, sunk cost, and export performance: A firm level study of Pakistan's textile sector

The textile sector is a significant exporting sector of Pakistan. This study examines the determinants of the export performance of Pakistani textile firms using firm-level panel data from 2008 to 2018. Under the framework of the dynamic System Generalized Method of Moment (SGMM) methodology, our findings suggest that both sunk costs and firm-specific characteristics like productivity, age, and size are important determinants of textile exports. Further, the study also observes that firms with a high number of export destinations and greater product diversification tend to export more. The year-specific dummies reveal that textile export performance is adversely affected by the energy crisis in 2012. We recommend that Pakistan should support large, experienced, and productive textile exporter firms to boost textile exports. Besides, more assistance should be provided regarding potential overseas markets to the existing and new export firms.

COVID-19 and Global Value Chains Participation: Export Performance of Croatian Firms

Abstract For the last two-three years, the disruptions of the GVC caused by the COVID-19 pandemic have forced the business sector to restructure and adjust, sometimes very costly and painful. Moreover, with the recent war in Ukraine foreseeable negative implications, it is very certain that large-scale disruptions in the global economic trade and investment flows, and ultimately in the GVC, will dictate the survival and sustainability of business in many economic sectors in the years to come. The main goal of this paper is twofold. First, to review the existing research on the effects of the COVID-19 pandemic on global trends affecting the current reconfiguring and reshaping of the GVC. Second, to analyse the characteristics of Croatian firms that recorded a decrease in their (indirect and direct) exports in the COVID-19 period by performing a logit model and utilising the World Bank’s Enterprise Survey 2019, backed up by the Enterprise Surveys Follow-Up on COVID-19 (3 rounds up to now).

Relationship multiplexity, multiple resource acquisition, and export performance of emerging-market firms

Relationship multiplexity, multiple resource acquisition, and export performance of emerging-market firms

Officials' Foreign Experience and Firms' Exports: Evidence from China

AbstractThis study examines how the foreign experience of local officials affects firms' exports in China. Using a matched sample from 2000 to 2012, we found that the foreign experience of municipal Party secretaries had a significant impact on the promotion of firms' exports, especially for private firms. This positive impact was more pronounced when officials went abroad at a younger age, stayed abroad for a longer period, returned to China for a longer time, and had greater promotion incentives. We found that officials' foreign experience helped to mitigate the negative impact of institutional distance and provided firms with better access to export subsidies, both of which could promote exporting. There was also a complementary effect when officials and executives both had foreign experience. Overall, our study provides some insights into the economic outcomes of officials' foreign experience and sheds light on the export performance of Chinese firms.

Determinants of Export Performance of Pakistan: Evidence from the Firm-Level Data

This paper explores the determinants of export performance at the level of firms in respect of their characteristics and supply side constraints. The analysis is based on a survey of export-oriented firms in four major sectors. The results indicate a relationship between the better performance of foreign-owned firms to their better know-how and resources compared to the domestically owned firms. Export performance is positively affected by the level of investment in market/client oriented technologies. Lack of certification of product and process standards is the main supply side constraint adversely affecting the firms’ export performance. Facilitation measures like export processing zones, internationally recognised testing labs, and industrial clusters would be helpful in improving the export performance of firms. JEL classification: F1, L1, L6 Keywords: Trade, Exports, Firms, Performance, Manufacturing

Does firms and managerial experience matter for exporting? The case of selected EU member and non-member countries

PurposeThe main goal of this paper is to study empirically the importance of experience of top managers and firms for export performance, having controlled for a number of firm characteristics.Design/methodology/approachThe study is based on the probit model applied to the 2020 edition of the BEEPS firm level survey. The authors analyze firms in 15 EU member and 15 non-member countries.FindingsThe results indicate that firm experience can increase the probability of direct exporting, but is not significant for indirect exporting. The results also support the importance of interaction between experience of managers and experience of firms. The authors conclude that only the combination of managerial and firm experience can have a positive and significant effect for direct exporting. This relationship is more pronounced in the case of EU members.Research limitations/implicationsThe main limitations of our approach are related to data constraints. These include availability of only cross-sectional data and the limited number of individual characteristics of managers.Practical implicationsThe importance of experience for exporting suggests that firms can break into foreign markets by hiring more experienced managers.Social implicationsPost-communist countries can improve their export performance by hiring more experienced managers that would stimulate direct exports. Moreover, they can also export indirectly through intermediaries.Originality/valueIn contrast to previous studies, the authors used a model proposed by Jørgensen and Schroder (2008) in which the authors endogenized the costs of exporting by linking them to firm and managerial experience. Then, the authors validated empirically the importance of experience for firm export performance, having controlled for the set of individual firm characteristics.

The Impact of Different Innovation Modes on Export Performance of Chinese Firms

A growing number of Chinese firms have chosen to enter the export market to benefit from the global market. The analysis of determinants of export performance has become significantly crucial within the context of emerging markets. This study looks at two aspects of innovation strategy, namely internal and external innovation and their effects on exports, which is the first step of internationalization. Drawing on the resource-based view (RBV) and institutional-based view (IBV), the study investigates the role of different innovation modes in shaping the export performance of Chinese firms in the presence of institutional obstacles. The findings show external innovation strategy enables Chinese firms to perform better in the export market. However, the export performance will be negatively affected if firms adopt both innovation strategies. In Tsinghua University’s addition, the impact of the external innovation model is amplified for firms that encounter more institutional obstacles.

Adaptation strategy, international experience and export performance of Moroccan handicraft firms: the mediating role of partnerships

PurposeThis paper aims to examine the specific role that partnerships play in the relationship between adaptation strategy, international experience, and export performance of handicraft firms in an emerging country setting. The authors' purpose is to identify the key factors that may contribute to the success of export activities of small handicraft companies in international markets.Design/methodology/approachDrawing on a non-probability sampling technique, the authors collected survey data from 410 handicraft companies located in Morocco. The authors' conceptual model, which draws on the network theory, was tested using covariance-based Structural Equation Modeling by means of AMOS 24 Software.FindingsThe results indicate that adaptation marketing strategy and partnerships impact positively the export performance of handicraft firms. Partnerships also play an intermediary role by partially (fully) mediating the relationship between adaptation strategy (international experience) and export performance.Practical implicationsThis study may assist marketers and entrepreneurs in handicraft companies to better understand the causal relationship between adaptation strategy, marketing experience and export performance of entrepreneurs' firms. Managers in these companies should be aware of the importance that partnerships play in boosting the export performance through marketing practices and experience.Originality/valueThe authors' paper contributes to the scant literature on the adaptation marketing strategy and export performance and the intermediary role of partnerships in the specific context of handicraft businesses operating in North African emerging markets, namely Morocco.

The role of innovation and internationalization support in small‐ and medium‐sized enterprises’ export performance

AbstractAlthough research concerning the internationalization and innovativeness of small‐ and medium‐sized enterprises (SMEs) has received increasing scholarly attention, it mostly neglected internationalization support and underexplored post‐crisis contexts. Greece recently faced a severe economic crisis of international concern, which resulted in a unique business environment to examine the mechanisms of innovativeness and internationalization. This study examines the roles of innovativeness and internationalization support in export performance using survey data of 262 Greek manufacturing SMEs. Our findings indicate that innovation helps firms improve their export performance, but the different definitions of export performance and innovativeness caused sizeable differences. Internationalization support is important for the export performance of firms, and SMEs receiving high levels of internationalization support can overcome the lack of innovativeness and increase their export performance.

Industrial subsidies and impact on exports of trading partners: Case of China

AbstractThis paper explores the impact of Chinese subsidy interventions in the upstream sector on the competitiveness of the downstream sector. In particular, the paper investigates the causal effect of Chinese subsidies on base metal products on the export competitiveness of downstream sectors in other major trading countries. To explore the impact of base metal subsidy interventions on the downstream sector of a trading partner, we exploit both temporal variation in subsidy interventions and base‐metal consumption by the downstream sector. Using a panel data for 137 sectors in 40 major trading partners of the Chinese economy, the results of the paper reveal that a one‐unit increase in Chinese subsidies decreases competitors’ exports by an average of 16.6%. This indicates that an increase in one standard deviation of Chinese subsidies in the base metals sector decreases exports in the other major economies by 0.17 percentage points. The findings of the paper reveal that the impacts of Chinese subsidy interventions are larger and statistically significant for the exports of developed countries and metal‐intensive users in the downstream sectors. Production relocation to China, absorption of larger inexpensive base metals input by domestic Chinese firms, and subsidy complementarity in the Chinese upstream and downstream sectors could be some of the potential drivers for the negative impact of Chinese subsidy interventions on the export performance of foreign downstream firms.