Export Promotion Research Articles

Trading with Frenemies: How Economic Diplomacy Affects Exports

Abstracts Trade is inherently risky, involving a commitment problem for both importers and exporters. The former must deal with ex ante uncertainty about whether exporters will deliver the goods or services as promised, while the latter has to identify an importer willing to trade a product. How, then, do firms establish trading relationships, especially in new markets? While both classical and newer trade theories tend to downplay the role of government in trade, we argue that government institutions play a crucial role in resolving this uncertainty. Specifically, export promotion agencies and embassies in foreign countries vet potential trade contacts and head off potential disputes before they get too serious, thus insuring against the basic risks of trade. We expect that this institutional backing will have stronger export-promoting effects on great powers’ trade with economically developing and politically dissimilar countries. Using a large collection of U.S. State Department cables from the 1970s that concern export promotion, we find strong evidence that promotion efforts had the largest effect when economic trade barriers were high and in countries that were politically dissimilar to the U.S. Rather than passively participating in trade, government bureaucrats play a large role in helping firms establish trading relationships.

Enhancing Export Performance through Marketing Capability: An Empirical Study of Ethiopian Leather Industry

This study aimed to gain insight into export promotion programs (EPPs) and their effects on export performance (EP). Also, the mediating role of marketing implementation capability is examined. The target respondents were leather and leather product export manufacturing firms in Ethiopia. Convenience and snowball sampling techniques were used. Owners and managers responsible for exporting leather and leather products were identified and selected to participate in the survey. A total of 178 valid responses were analyzed using the Smart PLS Software (version 4.0). The results show that the use of export promotion programs has a significant impact on export performance. Trade fairs, trade missions, foreign offices, and education and training have significant impacts on export performance. Also, marketing implementation capability mediates between government offered EPPs and export performance. However, ownership and experience doesn’t have moderation impact. This study contributes to the literature on export performance in emerging nations, where search is scant. In addition, we focused on debate on export promotion programs, marketing implementation capability, and export performance.

THE EFFECT OF EXPORT PROMOTION PROGRAM TOWARDS SMALL-MEDIUM ENTERPRISES’ EXPORT PERFORMANCE: A GOVERNANCE PERSPECTIVE

This paper investigates the effectiveness of export promotion programs (i.e., information, experiential, and financial supports) towards small-medium enterprises (SMEs) export performance. The research framework is guided by the Research-Based View. A sample of 116 Malaysian small and medium size exporter firms was tested by using the model. The data were analyzed through a partial least square structural equation modelling approach. Study results show that all three supports in the export promotion program improve SMEs’ export performance with the mediating effect of network role. The findings show that the implication of the impact of export promotion programs on export performance is justified. Besides, it also validates the importance of networking in using support from government agencies. The findings can also help SMEs engage with foreign buyers or trade organizations to profit from trade fairs and trade exhibits, promoting promotion programs on a global scale. Last but not least, government agencies can also strengthen international trade relations and foreign diplomacy for exporters to boost their trade competitiveness.

Home Peers, Business Owners’ Gender, and the Export Intensity of SMEs

Small and medium-sized enterprises (SMEs) can improve their export performance by co-locating with export firms from the same industry and country. However, the export implications are yet to be addressed systematically. This study investigates when and how women-owned SMEs convert their geographic proximity to home peers through social proximity and cognitive proximity into high export intensity. We develop a nuanced knowledge spillover perspective incorporating gender mechanisms to clarify the relationship between home peers and SMEs’ export intensity at the regional and national levels. To test our hypotheses, we designed quantitative research using a survey database from Statistics Canada, Survey on Financing and Growth of Small and Medium Enterprises (SFGSME), with a sample of 9,977 Canadian SMEs. Our study shows that, among other things, home peers’ positive impact on SMEs’ export intensity is more significant when their owners are exposed to a larger number of relatively close same-gender home peers (i.e., same-gender regional home peers). Moreover, we show that such positive home-peer effects on SMEs’ export intensity are even stronger for women business owners than men business owners. We clarify our contributions by discussing the theoretical and practical implications of our findings. By demonstrating the significance of same-gender regional home peers for women owners, we contribute to the knowledge spillover perspective on exporting, emerging research streams on home peers, and women entrepreneurship research in the international entrepreneurship field. Our findings also suggest that women entrepreneurs can particularly benefit from government-funded export promotion programs when the programs are appropriately designed and promoted to women entrepreneurs.

STRATEGI EKSPOR PT LEGEND TREN INTERNASIONAL DALAM MEMBAWA MINUMAN LOKAL KE PASAR INTERNASIONAL

Currently, MSMEs not only market their products to the domestic market but also to the international market. One is PT Legend Tren Internasional, which brings traditional local drinks to the international market. Legen drink or siwalan sap water is a product from Tuban City that PT Legend Tren Internasional processes as a product that is low in sugar and suitable for people with diabetes. The brand image emphasized in this product is typical of the Indonesian archipelago, which is global. The research discusses the company's export strategy, which uses the concepts of product adaptation and innovation strategies, product quality standardization strategies, and export promotion strategies. This research is qualitative research with primary data sources through interviews and secondary data to find out the strategies of Legend Tren International in introducing products and exporting them to various countries. This MSME does not have competitors, so it is an opportunity to market its products internationally. They have already exported products to Hong Kong, Singapore, and Nigeria.

Internationalization ecosystems: a framework proposal for the international business theory

Objective: The research proposes an original theoretical framework to explain the nature, uniqueness, and dynamics of the Internationalization Ecosystem (INT-E), streamlining the integration of contemporary International Business (IB) theories into an ecosystemic perspective. Method: A systematic literature review (SLR) was carried out to identify the different types of studies focused on internationalization from an ecosystemic perspective, followed by a thematic analysis, which determined the framework’s key conceptual constructs. Main Results: An INT-E framework was conceptualized, integrating business, entrepreneurial, innovation, and platform ecosystems, extracting pivotal elements to enhance its theoretical and practical dimensions within the realm of IB studies. Relevance/Originality: The INT-E concept is underexplored in IB literature, especially in an ecosystemic context. It is typically seen as part of broader ecosystems like entrepreneurship or digital platforms, but here a new conceptual perspective is proposed, opening avenues for further inquiry. Theoretical / Methodological Contributions: Theoretically, by conceiving the INT-E framework, the research encourages the pursuit of studies on ecosystem integration and replication, which is still incipient in most IB literature. Methodologically, the application of the thematic analysis enhances the qualitative aspect of studies in IB theory. Social / Managerial Contributions: The framework serves as a tool for enhancing internationalization strategies across various dimensions, including export promotion, foreign direct investment (FDI) attraction and ecosystem integration.

Determinants of the Export Activity. A Configurational Analysis of the Family Firm

Family firms are of great importance in the increasingly competitive and unstable environment in which they have to operate. Furthermore, they evidence a series of specific characteristics that make them behave differently –specifically, when having to export. Among these distinctive traits, their lack of resources and more conservative attitude towards risk may limit their international activity. Nevertheless, we show that these obstacles are minimized when considering certain determinants that have traditionally been seen as drivers of firms’ export competitiveness (i.e. innovation, collaboration, using own means, export promotion mechanisms, and exporting to developed markets) together as a set. We perform a Fuzzy-set Configurational analysis to study the configurational effect of the abovementioned determinants on a sample of 68 Spanish family firms in the agricultural sector.

Modern and conventional processing technologies and their impact on the quality of different millets.

Millet, the highly sustainable crop for farming and combating hunger, has recently regained a resurgence in popularity as people seek more sustainable and nutrient-dense alternatives. International organizations and research institutions have advocated for increased millet production and consumption by introducing novel technologies and machinery in response to global food security and climate change challenges. This review aims to identify the impact of modern and conventional processing technologies on the quality of different millets. A comprehensive analysis of research reviews reveals that double-stage and tabletop centrifugal dehullers, infrared roasting, pulsed light, ultrasound, high-pressure processing methods, fortification, and encapsulation are optimal for nutrient retention in various millets. Extrusion technology application in millet processing has created a diverse range of value-added products with extended shelf stability. Emphasis is needed to develop robust promotion and distribution channels and establish an export promotion forum involving all stakeholders to promote and diversify millet-based products and technologies.

What can we learn from service model analysis? An application in the government export finance sector

The service model approach, like business models in the private sector, is gaining increasing attention in public management literature. In line with this evolving discourse, our study analyzes service models in government export promotion. By exploring the use of service models and discussing key developments, we shed light on the diverse application of service models in the context of officially supported export credits – an under-researched field in which a lot of innovation is happening. We observe a limited number of traditional service models with significant relevance. In addition, our findings suggest a rising diversity that signifies innovation and the broadening scope of activities. We also uncover the underlying motivations and practical experiences associated with their implementation and provide valuable insights into the benefits they offer.

TRADE POLICY, EXCHANGE RATE DYNAMICS AND MANUFACTURING SECTOR OUTPUT IN NIGERIA

Two macroeconomic policies that have impacted on Nigerias manufacturing industry are trade and exchange rate policies. From 1981 to 2022, this study looked at the connection between Nigerias real industrial production, exchange rate, and trade policy. Real manufacturing GDP served as a stand-in for real manufacturing output, and explanatory variables similar to the exchange rate, per capita income, monetary policy rate, manufacturing capacity utilization rate, import to export ratio, and dummy variables for structural adjustment were employed. The model was analyzed in the research by means of autoregressive distributed lag (ARDL) technique. The outcomes showed that while exports as a ratio of gross domestic product (EXGDP). Significantly boosted real manufacturing output (RMO) both in the near and distant future times. Imports as a ratio of gross domestic product (IMGDP) had a negative impact on RMO. Trade liberalization by DSAP had a significant benefit on actual manufacturing production over the long run, while it had a minimally positive impact on RMO during the near term. The rate of exchange has a short-term favorable influence on RMO but a long-term negative one. To increase manufacturing output, the federal government of Nigeria should align its trade policy with the export promotion industrialization plan. KEYWORDS: Trade Policy, Exchange Rate Dynamics, Manufacturing Output, ARDL, Nigeria.

Non-Oil Export Promotion and Manufacturing Capacity Utilization in Nigeria and South Africa: A Tale of Two Countries in Africa

This paper studies the dynamics between non-oil export promotion and manufacturing capacity utilization in Nigeria and South Africa. The empirical analysis applies the asymmetric ARDL cointegration technique proposed by Shin et al. (2011) from 1986 to 2022. The evidence suggests that ignoring the intrinsic nonlinearities may lead to misleading inference. In particular, the results reveal significant differences in the response of manufacturing capacity utilization to positive or negative changes in non-oil export and other explanatory variables in both the long- and short-run time horizons. The evidence of asymmetry could be of major importance for more efficient policymaking and forecasting in the Nigerian and South African manufacturing sectors to grow.

Growth models, growth strategies, and power blocs in Turkey and Egypt in the twenty-first century

Analysis of the growth patterns in the Global South in the twenty-first century suggests there is room for authoritarian states to search for new growth models. Authoritarian states, such as Turkey and Egypt, benefited from global financial circumstances in the early 2000s and experienced shifts in growth strategies in the 2010s, suppressing political space further. Our main research question, thus, is focusing on what the main domestic political economy causes of these growth strategy and model changes are. To explain the changes in growth strategies and models amid the strength of reinforced authoritarian regimes in these two countries, we employ a hybrid research strategy, tying growth model changes to conflicts within the power bloc. We argue that in the mid-to-late 2010s, peripheral goods producers gained the upper hand in Turkey, while a military takeover in Egypt was followed by the promotion of exports and new investments. We also contend that power bloc reconfigurations in the last decade and the rise of new growth strategies both in Turkey and in Egypt aimed to change previous domestic demand-led demand and growth models.

Economic Growth Determinants in Pakistan: An Empirical Analysis Using ARDL Model

The objective of this study is to examine the determinants that affect Pakistan’s economic growth. The study examines the causal relationship between economic determinants and growth from 1972 to 2021. Key determinants in the model include physical capital stock, employed labour force, bank credit, human capital, exports, and imports. Autoregressive Distributed Lag (ARDL) model was used to fulfil the research objectives. The study found long-term co-integration between the variables. Both physical capital and human capital were found to be statistically significant, positively affecting economic growth. Thus, both are complimentary to economic growth rather than substitutes. The study noted that employed labour force, bank credit, exports, and imports did not affect economic expansion. It suggests that neither import substitution nor export promotion is effective in achieving sustainable growth in the period of study. Furthermore, an increase in the employed labour force is not sufficient for economic growth after controlling for the effect of human capital. Results suggest that improvement in infrastructure and human capital productivity are essential to achieve sustainable growth.

Policy approaches to stimulate exports: The case of Georgia

AbstractThis report examines exporters’ challenges and possible solutions for public intervention to promote foreign trade. Based on fieldwork conducted in Georgia, we explore which policy approaches can help to stimulate Georgian exports further. Our outcomes show that exporters face substantial barriers such as navigating complex trade regulations, lack of knowledge about target markets, trade finance gaps, as well as new export promotion programs (EPPs) in competitor countries. Other upper‐middle‐income countries can learn from our results that exporters can significantly benefit from a comprehensive export promotion strategy combined with an ecosystem‐based “team” approach. EPPs related to awareness and capacity building in Georgia should be part of this strategy, focusing on challenges such as a lack of knowledge about trade practices and international business skills. Other EPPs must help to mitigate related market failures, as information gathering is costly, and firms have no incentive to share this information with competitors. Furthermore, targeted marketing support and customer matchmaking can answer Georgian exporters’ challenges, such as lack of market access and low sector visibility. Our results also show that public intervention through financial support and risk mitigation is essential for firms with an international orientation. The high‐quality, rich outcomes provide significant value for other upper‐middle‐income countries by exploring the example of Georgia’s contemporary circumstances in an in‐depth manner based on extensive interviews and document analysis. Limitations include that our work primarily relies on qualitative data and further research could involve a quantitative study with a diverse range of sectors.

A Study on Contribution of Handloom and Cotton Industry in Indian Economy

The wave of globalization and liberalization appeared in the India in 1991. With the concept of liberalization, privatization and globalization a new chapter has been opened up in the Indian economy and her billion plus population. The Hugli district and Nadia District in West Bengal are one of the most renowned names in the handloom and cotton industry of West Bengal and a good percentage of people are engaged in this heritage industry. The paper also suggests some strategies to make this ever challenging industry globally competitive, such as, the identification of modern trends, promotion of exports, market assessment so that this heritage industry can cope with the modern trends and utilise the benefits of globalization.

India’s trade related policies during Atal Bihari Vajpayee government

The open policy of a large country influences the global economy and trade. In this context, India's foreign policy attracts countries to boost their trade relations. India's economy is now the fifth largest in the world, accounting for almost 3% of the global GDP. Many government leaders are responsible for strengthening the Indian economy at the global level. In this regard, Atal Bihari Vajpayee, as Prime Minister of India, has majorly boosted India's economic engagement with the international community through various policies and initiatives. This study aims to emphasise Atal Bihari Vajpayee's contributions to foreign trade and policy. In this paper, we have focused on the major contribution of the Vajpayee government to global community and countries' foreign trade relations and policy. This paper relies on secondary data sources. In the methods, we have used descriptive statistics, trend lines, and tables which are based on time series data. This study asserts that Atal Bihari Vajpayee's time as Prime Minister had a substantial impact on the development of India's international trade strategies, emphasizing liberalization, infrastructure development, bilateral relations, and export promotion in order to enhance India's integration into the global economy.

Export competitiveness of Turmeric from India

The study examined the export performance of turmeric from India. The results revealed a positive growth rate in the area, production, productivity, export quantity, and export value of turmeric from India. Karnataka demonstrated the highest CAGR in both area and production of turmeric, while Odisha recorded the highest CAGR in productivity. The results of the transitional probability matrix indicated that Malaysia was the most stable market for Indian turmeric, followed by UAE and Iran. While India had a comparative advantage in turmeric exports, demonstrated by positive RSCA values, it has gradually declined. The export of turmeric was positively influenced by export price and production, whereas the domestic price had a negative effect. Forming turmeric parks would facilitate better promotion of production technology, processing, value addition, marketing, and export of turmeric from India.

Trade Integration of India with South and Central Asia: Evidence from Gravity Model

The present study investigates exports of India with selected South and Central Asian countries and their top trade partners. The panel data from 1996–2020 is used and PPML estimation technique which takes care of heterogeneity, zero trade and endogeneity is applied. In addition to basic variables, institutional setup in selected countries is included in the model to get better results. To check robustness of results, in addition to PPML, Heckman selection model is also estimated. The findings indicate that institutions play an important role in export promotion of India to these countries. Among various institutional factors, effectiveness of government in different aspects has considerable influence on exports from the country. The study concludes that institutional quality needs to be improved to enhance trade cooperation of India with these countries.

A Study of Global Trade War and Its Impact on Indian Economy

A Study of Global Trade War and Its Impact on Indian Economy

Is There J-Curve Phenomenon and Asymmetric Effects of Exchange Rate on Trade Balance in East Java?

This study aims to analyze the effect of exchange rate asymmetry on the trade balance between East Java Province and the largest trading partner countries (China, Japan, and the United States) in the short-run and long-run and to detect the J-Curve phenomenon. This study uses the Nonlinear Autoregressive Distributed-Lag (NARDL) method with 2010Q1 - 2023Q1 time-series data. The results of the study show that in the short-run, both the appreciation (NEG) and depreciation (POS) of the exchange rate have no effect on East Java's trade balance in all models. However, in the long-run, exchange rate appreciation and depreciation have a significant negative effect on East Java's trade balance across all models. Based on the estimation results, it can be concluded that there is no J-Curve phenomenon in East Java's trade balance with trading partner countries. Because in the asymmetry model, the J-Curve phenomenon can occur if depreciation or appreciation has a significant positive effect and is cointegrated in the long-run, regardless of the short-run coefficient being positive or negative and significant or not significant. From these conditions, it can be concluded that the trade industry in East Java is called inelastic. That is, price changes do not affect demand for export and import volumes. Therefore, the policy of depreciating the Rupiah exchange rate is not the best strategy to be implemented as an export promotion for East Java because only a few sectors benefit.