Identifying Supply-Side Constraints to Export Performance in Ecuador : An Exercise with Investment Climate Survey Data
The authors apply a Heckman selection model to the 2003 Investment Climate Survey (ICS) to investigate supply-side constraints to export performance at the firm level in Ecuador. To correct for the non-random truncation problems, they use the Heckm...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/03/7479758/identifying-supply-side-constraints-export-performance-ecuador-exercise-investment-climate-survey-data http://hdl.handle.net/10986/7219 |
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okr-10986-72192021-04-23T14:02:33Z Identifying Supply-Side Constraints to Export Performance in Ecuador : An Exercise with Investment Climate Survey Data Correa, Paulo Dayoub, Mariam Francisco, Manuela ACCESS TO TECHNOLOGY AGRICULTURAL PRODUCTS APPAREL BARRIERS TO ENTRY BIDDING BILATERAL FREE TRADE AGREEMENT BUSINESS CYCLE BUSINESS ENVIRONMENT CAPITAL INVESTMENT CAPITAL STOCK COMPANY COMPETITORS CORPORATION CREDIT LINES CUSTOMS CLEARANCE DOMESTIC COMPETITION DOMESTIC MARKET DOMESTIC MARKETS EMPLOYMENT ENTREPRENEURS EXPANSION EXPENDITURE EXPENDITURES EXPORT INTENSITY EXPORT PERFORMANCE EXPORTERS EXPORTS FINANCIAL MARKETS FIRM SIZE FOREIGN DIRECT INVESTMENT FOREIGN MARKET FOREIGN MARKETS FOREIGN OWNERSHIP FREE TRADE HOME MARKET IMPORT TARIFF INDUSTRIAL SECTOR INTERMEDIATE GOODS INTERMEDIATE PRODUCTS INTERNATIONAL TRADE LABOR MARKET LABOR MARKETS LISTED COMPANIES MARKET CONCENTRATION MARKET CONDITIONS MARKET FAILURES MARKET IMPERFECTIONS MARKETING MEDIUM ENTERPRISES MONOPOLIES MULTINATIONAL FIRMS POSITIVE EXTERNALITIES PRIVATE COMPANY PRODUCT MARKETS SMALL FIRMS SOUTH AMERICAN SUBSTITUTION SUPPLIER SUPPLIERS TOTAL SALES TRADE AGREEMENT TRADE INTEGRATION TRADE LIBERALIZATION TRADE PARTNER TRADE PARTNERS WELFARE GAINS The authors apply a Heckman selection model to the 2003 Investment Climate Survey (ICS) to investigate supply-side constraints to export performance at the firm level in Ecuador. To correct for the non-random truncation problems, they use the Heckman selection model to estimate the probability of exporting (export propensity) and the share of total sales that are exported (export intensity) by Ecuadorian firms. They develop a baseline model with 12 independent variables divided into three categories-idiosyncratic characteristics, technology, and business environment. The authors develop three other models with the addition of variables related to trade integration, business environment, and infrastructure. Results corroborate with the hypothesis implicit in the Heckman model, which considers both decisions made by a firm-whether to export, and how much of its sales to export-to be interdependent. In the Ecuadorian case, they find three important results for the firm's export performance: technology matters; infrastructure does not; and trade orientation is significant, with specialized firms tending to have smaller export intensity when their main trade partners are countries of the Andean Community, and the opposite happening if the United States is their main trade partner. The authors find a robust and stable relationship for export propensity and intensity with size, import of inputs, labor regulations, in-house research and development, quality certification, web-use, and foreign ownership. Also, capacity utilization and trade with the United States positively affect export intensity, while trade within the Andean Community has the opposite effect in the outcome variable. But they find no significant relationship for the infrastructure variables. 2012-06-06T14:14:56Z 2012-06-06T14:14:56Z 2007-03 http://documents.worldbank.org/curated/en/2007/03/7479758/identifying-supply-side-constraints-export-performance-ecuador-exercise-investment-climate-survey-data http://hdl.handle.net/10986/7219 English Policy Research Working Paper; No. 4179 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Ecuador |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO TECHNOLOGY AGRICULTURAL PRODUCTS APPAREL BARRIERS TO ENTRY BIDDING BILATERAL FREE TRADE AGREEMENT BUSINESS CYCLE BUSINESS ENVIRONMENT CAPITAL INVESTMENT CAPITAL STOCK COMPANY COMPETITORS CORPORATION CREDIT LINES CUSTOMS CLEARANCE DOMESTIC COMPETITION DOMESTIC MARKET DOMESTIC MARKETS EMPLOYMENT ENTREPRENEURS EXPANSION EXPENDITURE EXPENDITURES EXPORT INTENSITY EXPORT PERFORMANCE EXPORTERS EXPORTS FINANCIAL MARKETS FIRM SIZE FOREIGN DIRECT INVESTMENT FOREIGN MARKET FOREIGN MARKETS FOREIGN OWNERSHIP FREE TRADE HOME MARKET IMPORT TARIFF INDUSTRIAL SECTOR INTERMEDIATE GOODS INTERMEDIATE PRODUCTS INTERNATIONAL TRADE LABOR MARKET LABOR MARKETS LISTED COMPANIES MARKET CONCENTRATION MARKET CONDITIONS MARKET FAILURES MARKET IMPERFECTIONS MARKETING MEDIUM ENTERPRISES MONOPOLIES MULTINATIONAL FIRMS POSITIVE EXTERNALITIES PRIVATE COMPANY PRODUCT MARKETS SMALL FIRMS SOUTH AMERICAN SUBSTITUTION SUPPLIER SUPPLIERS TOTAL SALES TRADE AGREEMENT TRADE INTEGRATION TRADE LIBERALIZATION TRADE PARTNER TRADE PARTNERS WELFARE GAINS |
| spellingShingle |
ACCESS TO TECHNOLOGY AGRICULTURAL PRODUCTS APPAREL BARRIERS TO ENTRY BIDDING BILATERAL FREE TRADE AGREEMENT BUSINESS CYCLE BUSINESS ENVIRONMENT CAPITAL INVESTMENT CAPITAL STOCK COMPANY COMPETITORS CORPORATION CREDIT LINES CUSTOMS CLEARANCE DOMESTIC COMPETITION DOMESTIC MARKET DOMESTIC MARKETS EMPLOYMENT ENTREPRENEURS EXPANSION EXPENDITURE EXPENDITURES EXPORT INTENSITY EXPORT PERFORMANCE EXPORTERS EXPORTS FINANCIAL MARKETS FIRM SIZE FOREIGN DIRECT INVESTMENT FOREIGN MARKET FOREIGN MARKETS FOREIGN OWNERSHIP FREE TRADE HOME MARKET IMPORT TARIFF INDUSTRIAL SECTOR INTERMEDIATE GOODS INTERMEDIATE PRODUCTS INTERNATIONAL TRADE LABOR MARKET LABOR MARKETS LISTED COMPANIES MARKET CONCENTRATION MARKET CONDITIONS MARKET FAILURES MARKET IMPERFECTIONS MARKETING MEDIUM ENTERPRISES MONOPOLIES MULTINATIONAL FIRMS POSITIVE EXTERNALITIES PRIVATE COMPANY PRODUCT MARKETS SMALL FIRMS SOUTH AMERICAN SUBSTITUTION SUPPLIER SUPPLIERS TOTAL SALES TRADE AGREEMENT TRADE INTEGRATION TRADE LIBERALIZATION TRADE PARTNER TRADE PARTNERS WELFARE GAINS Correa, Paulo Dayoub, Mariam Francisco, Manuela Identifying Supply-Side Constraints to Export Performance in Ecuador : An Exercise with Investment Climate Survey Data |
| geographic_facet |
Latin America & Caribbean Ecuador |
| relation |
Policy Research Working Paper; No. 4179 |
| description |
The authors apply a Heckman selection
model to the 2003 Investment Climate Survey (ICS) to
investigate supply-side constraints to export performance at
the firm level in Ecuador. To correct for the non-random
truncation problems, they use the Heckman selection model to
estimate the probability of exporting (export propensity)
and the share of total sales that are exported (export
intensity) by Ecuadorian firms. They develop a baseline
model with 12 independent variables divided into three
categories-idiosyncratic characteristics, technology, and
business environment. The authors develop three other models
with the addition of variables related to trade integration,
business environment, and infrastructure. Results
corroborate with the hypothesis implicit in the Heckman
model, which considers both decisions made by a firm-whether
to export, and how much of its sales to export-to be
interdependent. In the Ecuadorian case, they find three
important results for the firm's export performance:
technology matters; infrastructure does not; and trade
orientation is significant, with specialized firms tending
to have smaller export intensity when their main trade
partners are countries of the Andean Community, and the
opposite happening if the United States is their main trade
partner. The authors find a robust and stable relationship
for export propensity and intensity with size, import of
inputs, labor regulations, in-house research and
development, quality certification, web-use, and foreign
ownership. Also, capacity utilization and trade with the
United States positively affect export intensity, while
trade within the Andean Community has the opposite effect in
the outcome variable. But they find no significant
relationship for the infrastructure variables. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Correa, Paulo Dayoub, Mariam Francisco, Manuela |
| author_facet |
Correa, Paulo Dayoub, Mariam Francisco, Manuela |
| author_sort |
Correa, Paulo |
| title |
Identifying Supply-Side Constraints to Export Performance in Ecuador : An Exercise with Investment Climate Survey Data |
| title_short |
Identifying Supply-Side Constraints to Export Performance in Ecuador : An Exercise with Investment Climate Survey Data |
| title_full |
Identifying Supply-Side Constraints to Export Performance in Ecuador : An Exercise with Investment Climate Survey Data |
| title_fullStr |
Identifying Supply-Side Constraints to Export Performance in Ecuador : An Exercise with Investment Climate Survey Data |
| title_full_unstemmed |
Identifying Supply-Side Constraints to Export Performance in Ecuador : An Exercise with Investment Climate Survey Data |
| title_sort |
identifying supply-side constraints to export performance in ecuador : an exercise with investment climate survey data |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2007/03/7479758/identifying-supply-side-constraints-export-performance-ecuador-exercise-investment-climate-survey-data http://hdl.handle.net/10986/7219 |
| _version_ |
1764401655682433024 |