2015 | 43 | 115-135
Article title

Macro and microeconomic determinants of the EU firms’ export-market participation

Title variants
Languages of publication
Rapidly expanding literature on the new strand in the new trade theo- ry and empirical research in this area indicate factors which can posi- tively influence export participation of firms. The analysis presented in this study concentrates on verifying which barriers met by the European firms are significant constraints to their exports with an aim of ascertaining if problems identified at the microeconomic level may have their roots in macroeconomic situation. Estimation results indicate that the probability of exporting depends on a combination of a wide set of firms’ characteristics. Country-level macroeconomic and institutional conditions are responsible for a considerable part of country specific determinants of firms’ export and significantly influence participation in the international trade. The level of economic development, economic freedom and financial market regulations are important determinants of export decisions. The constraints perceived by the European entrepreneurs have rather limited direct impact on a probability of being exporter, however they influence negatively firms’ main competitiveness factor − TFP. Moreover, the analysis suggests that government policy going beyond creating friendly business environment and supporting the development of financial institutions is not effective. Any kind of public support, even directed to particular firms, does not increase their international competitiveness.
  • Wydział Nauk Ekonomicznych, Uniwersytet Warszawski
  • Altomonte, Carlo and Gianmarco Ottaviano. 2014. EFIGE final report to the European Commission. From Genesis to Revelation: How firm-level data can change the way we think about economic policy. wp-content/uploads/2015/09/Final-report-EFIGE-1001131.pdf (accessed: 25.11.2015).
  • Altomonte, Carlo, Tommaso Aquilante and Gianmarco Ottaviano. 2012. The triggers of competitiveness. the EFIGE cross-country report. http://bruegel. org/2012/07/the-triggers-of-competitiveness-the-efige-cross-country-report/ (accessed: 25.11.2015).
  • Bernard, Andrew B. and J. Bradford Jensen. 1999. “Exceptional Exporter Performance: Cause, Effect, or Both? ” Journal of International Economics 47 (1): 1−25.
  • Bernard, Andrew B., Jonathan Eaton, J. Bradford Jensen, and Samuel Kortum. 2003. “Plants and Productivity in International Trade.” American Economic Review 93 (4): 1268−1290.
  • Cieślik, Andrzej, Anna Michałek and Jan Michałek. 2012. „Export Activity in Visegrad 4 Countries: Firm Level Investigation.” Ekonomia 30: 6−22.
  • Cieślik, Andrzej, Anna Michałek and Jan Michałek. 2014. “The Influence of Firm Characteristics and Export Performance in Central and Eastern Europe: Comparisons of Visegrad, Baltic and Caucasus States.” Entrepreneurial Business and Economics Rewiev 2 (1): 4−18.
  • Dollar, David and Aart Kraay. 2001. “Trade, Growth, and Poverty.” IMF – Finance and Development 38 (3). (accessed: 25.11.2015).
  • Greenaway, David, Alessandra Guiriglia and Richard Kneller. 2007. “Financial factors and exporting decisions.” Journal of International Economics 73 (2): 377−395.
  • Grubel, Herbert G. and P. Peter John Lloyd. 1975. Intra-industry trade: The theory and Measurement of international trade in differentiated products. New York: Wiley.
  • Helpman, Elhanan and Paul Krugman. 1985. Market Structure and International Trade. Cambridge: MIT Press.
  • Helpman, Elhanan, Marc J. Melitz and Stephen R. Yeaple. 2004. “Export Versus FDI with Heterogeneous Firms.” American Economic Review 94 (1): 300−316.
  • Krugman, Paul. 2008. The increasing returns revolution in trade and geography. krugman_lecture.pdf (accessed: 25.11.2015).
  • Levinsohn, James and Amil Petrin. 2003. “Estimating production functions using inputs to control for observables.” Review of Economic Studies 70 (2): 317−341.
  • Manova, Kalina. 2013. “Credit constraints, heterogeneous firms and international trade.” Review of Economic Studies 80: 711−744.
  • Melitz, Marc J. 2003. “The Impact of trade on intra-industry reallocations and aggregate industry productivity.” Econometrica 71 (6): 1695−1725.
  • Meyer-Stamer, Jörg. 1995. “Micro-level innovations and competitiveness.” World Development 23 (1): 143−148.
  • Rubini, Loris, Klaus Desmet, Facundo Piguillem and Aranzazu Crespo. 2012. Breaking down the barriers to firm growth in Europe: The fourth EFIGE policy report. firmgrowth-in-europe-the-fourth-efige-policy-report/(accessed: 25.11.2015).
  • Svejnar, Jan and Simon Commander. 2007. Do Institutions, Ownership, Exporting and Competition Explain Firm Performance? Evidence from 26 Transition Countries. Ross School of Business Working Paper Series No. 1067. Svejnar.pdf? sequence=1&isAllowed=y (accessed: 25.11.2015).
  • Wagner, Joachim. 2014. “Credit constraints and exports: a survey of empirical studies using firm-level data.” Industrial and Corporate Change 23 (6): 1477−1492.
Document Type
Publication order reference
YADDA identifier
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.