Trade Liberalization and 'Export Response': Whither Complementary Reforms?

What enables Ecuadorian manufacturing firms to start exporting? And what are the determinants of the share of total sales exported by a firm, once the decision of becoming an exporter has been made? We apply a Heckman selection model to the Ecuador's Investment Climate Survey (ICS) to investiga...

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Main Authors:	Correa, Paulo, Dayoub, Mariam, Francisco, Manuela
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 Multinational Firms International Business F230 International Linkages to Development Role of International Organizations O190
Online Access:	http://hdl.handle.net/10986/5545

id	okr-10986-5545
recordtype	oai_dc
spelling	okr-10986-55452021-04-23T14:02:22Z Trade Liberalization and 'Export Response': Whither Complementary Reforms? Correa, Paulo Dayoub, Mariam Francisco, Manuela Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 Multinational Firms International Business F230 International Linkages to Development Role of International Organizations O190 What enables Ecuadorian manufacturing firms to start exporting? And what are the determinants of the share of total sales exported by a firm, once the decision of becoming an exporter has been made? We apply a Heckman selection model to the Ecuador's Investment Climate Survey (ICS) to investigate supply-side constraints to export performance at the firm level. We estimate export propensity (the probability of exporting) and export intensity (the share of total sales that are exported). The application of the Heckman selection model to a rich dataset as the ICS is a major contribution as previous applications of the Heckman selection model used much limited datasets, limiting the range of hypotheses to be tested. Furthermore, other studies on export performance based on ICS data use either Tobit or Probit models, incurring important methodological limitations. We find robust and stable relationships for export propensity and intensity with firm size, import of inputs, labor regulations, in-house R&D, quality certification, Web use, and foreign ownership. Capacity utilization and trade with the US positively affect export intensity, while trade within the Andean Community has the opposite effect in our outcome variable. No significant relationship was found with the infrastructure variables. 2012-03-30T07:33:21Z 2012-03-30T07:33:21Z 2011 Journal Article Journal of International Trade and Economic Development 09638199 http://hdl.handle.net/10986/5545 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 Multinational Firms International Business F230 International Linkages to Development Role of International Organizations O190
spellingShingle	Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 Multinational Firms International Business F230 International Linkages to Development Role of International Organizations O190 Correa, Paulo Dayoub, Mariam Francisco, Manuela Trade Liberalization and 'Export Response': Whither Complementary Reforms?
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	What enables Ecuadorian manufacturing firms to start exporting? And what are the determinants of the share of total sales exported by a firm, once the decision of becoming an exporter has been made? We apply a Heckman selection model to the Ecuador's Investment Climate Survey (ICS) to investigate supply-side constraints to export performance at the firm level. We estimate export propensity (the probability of exporting) and export intensity (the share of total sales that are exported). The application of the Heckman selection model to a rich dataset as the ICS is a major contribution as previous applications of the Heckman selection model used much limited datasets, limiting the range of hypotheses to be tested. Furthermore, other studies on export performance based on ICS data use either Tobit or Probit models, incurring important methodological limitations. We find robust and stable relationships for export propensity and intensity with firm size, import of inputs, labor regulations, in-house R&D, quality certification, Web use, and foreign ownership. Capacity utilization and trade with the US positively affect export intensity, while trade within the Andean Community has the opposite effect in our outcome variable. No significant relationship was found with the infrastructure variables.
format	Journal Article
author	Correa, Paulo Dayoub, Mariam Francisco, Manuela
author_facet	Correa, Paulo Dayoub, Mariam Francisco, Manuela
author_sort	Correa, Paulo
title	Trade Liberalization and 'Export Response': Whither Complementary Reforms?
title_short	Trade Liberalization and 'Export Response': Whither Complementary Reforms?
title_full	Trade Liberalization and 'Export Response': Whither Complementary Reforms?
title_fullStr	Trade Liberalization and 'Export Response': Whither Complementary Reforms?
title_full_unstemmed	Trade Liberalization and 'Export Response': Whither Complementary Reforms?
title_sort	trade liberalization and 'export response': whither complementary reforms?
publishDate	2012
url	http://hdl.handle.net/10986/5545
_version_	1764395436564545536

Trade Liberalization and 'Export Response': Whither Complementary Reforms?

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