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Article
Publication date: 5 March 2018

Tiia Vissak, Oliver Lukason and Maria-Jesus Segovia-Vargas

This paper aims to find out if different exporter types dominate among matched mature Spanish and Estonian firms and whether these types are associated with specific export

Abstract

Purpose

This paper aims to find out if different exporter types dominate among matched mature Spanish and Estonian firms and whether these types are associated with specific export growth/decline patterns.

Design/methodology/approach

This study is based on firm-level data from the Estonian Business Register’s database of annual financial reports and SEPI Foundation’s survey on Spanish firms’ business strategies. From both countries, 242 firms were included and the period 2009-2013 was chosen.

Findings

Committed exporters (with 75 per cent or higher export shares) dominated in Estonia and experimental exporters (with export shares mostly below 10 per cent) in Spain. While in Estonia, the most frequent export growth/decline pattern encompassed four consecutive growth years, in Spain, it had two consecutive growth years and then two decline years. Spanish firms’ export growth/decline patterns were more random: 12 patterns of 16 fell within the range of a random walk assumption, while in Estonia, only 5 patterns were within the range. Contingency existed between exporter types and export growth/decline patterns only for the whole sample.

Originality/value

This paper studies if committed/aggressive/active exporters experience more export fluctuations than passive/experimental exporters, and how random export growth/decline patterns are.

Details

Review of International Business and Strategy, vol. 28 no. 1
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 25 February 2022

Xuebing Yang

This paper studies the frequency and the average size of export shipments at the firm–product–destination level.

Abstract

Purpose

This paper studies the frequency and the average size of export shipments at the firm–product–destination level.

Design/methodology/approach

This paper sets up a theoretical model about the shipping frequency and the shipment size of exports to a given market from individual exporters. Then it confronts the predictions of the model with trade data.

Findings

This paper shows that patterns of export shipments are determined by (1) a product's export potential in a market, which is the exports revenue when the firm delivers the exports of the product to the market in a single shipment in each period; and (2) factors related to the firm's efficiency of managing shipments of the product exported to the market.

Originality/value

This paper reveals some important patterns of export shipments. It provides a theoretical model that explains the patterns.

Details

Journal of Economic Studies, vol. 50 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 6 March 2007

Peter Kilduff and Ting Chi

This paper aims to present an exploratory investigation into ten‐year (1995‐2004) patterns of trade specialization among Eastern European and former Soviet Union Nations…

2302

Abstract

Purpose

This paper aims to present an exploratory investigation into ten‐year (1995‐2004) patterns of trade specialization among Eastern European and former Soviet Union Nations, assessing patterns of comparative advantage across the textile machinery, man‐made fiber, textile, and apparel sectors of the textile complex to determine whether these conform with both trade specialization and industry evolution theories.

Design/methodology/approach

A revealed symmetric comparative advantage index is employed to evaluate international competitiveness for 27 Eastern European and former Soviet Union Nations over a ten‐year period. Repeated measures ANOVA is used to determine the significance of the observed patterns across four income‐defined groups of nations.

Findings

Overall, the pattern of export development and RSCA generally reflects expectations regarding factor proportions theory and industry evolution models. The RMANOVA partially confirms the observations. The analysis indicates that income group does not independently affect comparative advantage; however, the nature of products is the significant factor influencing national comparative advantage.

Practical implications

The established models may be better at understanding those nations which have established relatively stable politic and economic environment, and been experiencing earlier stages of industry development, but appear less useful in predicting development patterns for those nations experiencing dramatic transitions from regulated to de‐regulated markets.

Originality/value

The patterns of national comparative advantage in a vertical textile complex are identified for Eastern European and former Soviet Union Nations. The dynamics of change over a ten‐year period following economic reforms are revealed.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 11 no. 1
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 6 February 2023

Henrique Correa da Cunha, Mohamed Amal, Dinorá Eliete Floriani and Maria Tereza Leme Fleury

This study investigates how the degree of internationalization (DOI) affects the financial performance of emerging market companies by making the distinction between export

Abstract

Purpose

This study investigates how the degree of internationalization (DOI) affects the financial performance of emerging market companies by making the distinction between export intensity and multinationality (i.e. foreign direct investment). The authors argue that the different DOI-performance patterns in the literature relate to different internationalization approaches, which are moderated in distinct ways by formal institutions in the home country.

Design/methodology/approach

Based on data of Brazilian firms in several industries and with different internationalization patterns including 100 exporting firms and 30 multinational companies with varying degrees of multinationality over a period of five consecutive years, the authors test their hypotheses using an unbalanced panel data with 346 firm-year observations. In order to test how the quality of formal institutions moderate the DOI-performance relationships, the authors estimate the changes in the slope of the regression line by adding and subtracting one standard deviation to the Worldwide Governance Indicators (WGI) variables.

Findings

A positive and linear association between export intensity-performance (EI-P) highlights the location specific comparative advantages of exporting Brazilian firms, while the multinationality-performance (M-P) relationship points to a horizontal S-shape pattern which conforms to the theoretical assumptions of the three-stage internationalization process. Formal institutions moderate positively the EI-P relationship, but moderate negatively each of the three stages of the M-P relationship.

Research limitations/implications

The findings from this study provide critical insights that contribute to the ongoing debate on how formal institutions in the home country affect the DOI-performance relationship of emerging market companies (EMCs). However, the authors consider that it has limitations as they focused exclusively on formal institutions captured by governance institutions in the Brazilian context.

Practical implications

This study provides relevant insights to managers and policy makers. Findings reveal that strong formal institutions in the home country make it easier (cheaper) for EMCs to invest abroad, and, at the same time, increase the efficiency of exporting firms and positively influence financial performance. Moreover, results show that during downturns in their domestic markets, multinational EMCs outperform domestic firms. In that sense, while policy makers can promote the internationalization and competitiveness of EMCs by implementing more supportive formal institutions, managers should consider a proactive approach and invest abroad when conditions in the home country are favorable.

Originality/value

By making the distinction between export intensity and multinationality this study contributes to the literature on the DOI-performance of EMCs providing a more nuanced view on how formal institutions in the home country moderate the EI-P and M-P relationships in different ways.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 14 December 2020

Tania El Kallab and Cristina Terra

This paper explores the role of colonial heritage on long-term economic development from a resource-curse perspective. The authors investigate the impact of colonial exports on…

Abstract

Purpose

This paper explores the role of colonial heritage on long-term economic development from a resource-curse perspective. The authors investigate the impact of colonial exports on long-term economic development through two channels: (1) a direct impact of the economic dependency on natural resources and (2) an indirect impact via its effect on colonial institutions, which persisted over time and influenced current economic development.

Design/methodology/approach

To address this issue, the authors use an original data set on French bilateral trade from 1880 to 1912. The authors use partial least square structural equation modeling (PLS-SEM) in the empirical analysis, so that the authors are able to construct latent variables (LVs) for variables that are not directly observable, such as the quality of institutions.

Findings

The authors find that exports of primary goods to France had a negative impact on colonial institutions and that for French colonies, this impact was driven by minerals exports. Despite its impact on colonial institutions, exports of French colonies had no significant indirect impact on their current institutions. The authors find no significant direct impact of colonial trade on current development for French colonies. Finally, colonial exports of manufactured products had no significant impact on colonial institutions among French colonies and a positive impact among non-French ones.

Research limitations/implications

Research implications regarding the findings of this paper are, namely, that the relative poor performance within French colonies today cannot be attributed to the extraction of raw materials a century ago. However, human capital and institutional development, instead of exports, are more relatively important for long-term growth. Some limitations in trying to determine the simultaneous relationship among colonial trade, institutions and economic performance are the relation between colonial trade and the extent of extraction from the colonizer, which is hard to quantify, as well as its precise mechanism.

Practical implications

Since the initial institutions set in those former colonies presented a strong persistence in the long run, their governments should focus now on building sound and inclusive political and economic institutions, as well as on investing in human capital in order to foster long-term growth. Once a comprehensive set of institutional and human resources are put in place, the quality and quantity of exports might create a positive spillover on the short-run growth.

Social implications

One social implication that can be retrieved from this study is the ever-lasting effect of both human capital investment and introduction of inclusive political and economic institutions on the long-run impact of growth.

Originality/value

The paper uses an original primary data set from archival sources to explore the role of colonial heritage on long-term economic development from a resource-curse perspective. It applies a relatively new model partial least squares path modeling (PLS-PM) that allows the construction of LVs for variables that are not directly observable, as well as channeling the impact on growth through both direct and indirect channels. Finally, it allows for the simultaneous multigroup analysis across different colonial groups.

Details

Journal of Economic Studies, vol. 48 no. 8
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 1 April 2006

Peter Kilduff and Ting Chi

This paper aims to present an exploratory investigation into long‐term patterns of trade specialization among leading textile and apparel exporting nations, assessing patterns of…

1437

Abstract

Purpose

This paper aims to present an exploratory investigation into long‐term patterns of trade specialization among leading textile and apparel exporting nations, assessing patterns of comparative advantage across the textile machinery, man‐made fiber, textiles and apparel sectors of the textile complex to determine whether these conform with both trade specialization and industry evolution theories. A model of evolutionary change in intra complex specialization is defined and evaluated.

Design/methodology/approach

A revealed comparative advantage index is employed to evaluate international competitiveness for 30‐nations over a 42‐year period. Repeated measures of ANOVA are used to determine the significance of the observed patterns across five income‐defined groups of nations.

Findings

Long‐term patterns of specialization broadly reflect expectations of factor proportions theory and industry evolution models. Product and income group characteristics combine to influence comparative advantage. Higher income nations generally remain stronger in more capital‐intensive sectors, while lower income countries have emerged to dominate labor‐intensive sectors. However, inclusion of a more complex array of variables is necessary to obtain a fuller understanding of international competitiveness.

Practical implications

Established theory remains a useful but limited guide to understanding the dynamics of international competitiveness in the context of the changing business environment. Improved understanding of patterns of change can assist strategic planning.

Originality/value

By embracing a long‐term time frame, a broad array of nations, and a vertical textile complex perspective to identify shifting patterns of competitiveness, this paper highlights key dynamics in the global textile complex over the last four decades.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 10 no. 2
Type: Research Article
ISSN: 1361-2026

Keywords

Abstract

Details

An Input-output Analysis of European Integration
Type: Book
ISBN: 978-0-44451-088-4

Article
Publication date: 1 March 2021

Martina Battisti, Joanna Scott-Kennel and David Deakins

Integrating network attributes from studies of social networks, business relationships and small- to medium-sized enterprise (SME) internationalization, this study adopts a…

Abstract

Purpose

Integrating network attributes from studies of social networks, business relationships and small- to medium-sized enterprise (SME) internationalization, this study adopts a perceptual view of a firm’s focal “net” of relationships to examine foreign market entry mode choice. This study aims to examine how the interaction between knowledge-intensive service (KIS) firm’s network ties, embeddedness and position is related to choice of mode and subsequently the firm’s perceived insidership status within its focal net.

Design/methodology/approach

This research is based on qualitative interviews with 25 small- to medium-sized KIS firms engaged in direct exporting or foreign direct investment (FDI). This study derives an empirically grounded framework of four distinct network patterns of these KIS firms through an iterative process of triangulation between cases and theory.

Findings

The four network patterns illustrate the complex interaction between network attributes and entry mode choice by KIS firms. The findings suggest formal ties and centrality in closed network relationships provide the “central controller” firm discretion over their entry mode choice. Resource-intensive FDI by “opportunistic investors” proved essential to securing centrality through formal, institutional ties. Less optimal patterns lacking institutional ties and centrality, however, precluded choice of FDI by “specialized exporters” and “client followers.” The study finds that entry modes are less likely to be influenced by the firm’s embeddedness in open or closed network relationships, but rather by the desire to achieve a more central network position and legitimacy through more formal, less imitable ties.

Research limitations/implications

The findings demonstrate the importance of network structure, a position of centrality, and strength of professional and institutional ties to small KIS firm internationalization. By adopting a more finely grained examination of the interaction between key attributes of the firm’s focal net, this study provides a valuable first step in conceptualizing the complexities associated with networking and adoption of export/investment internationalization modes.

Practical implications

There are a number of implications for the strategic and operational facets of smaller KIS firm internationalization. To avoid excessive network liability for resource-deficient SMEs, practitioners should consider network positioning as a strategic activity, with the costs associated with building and maintaining networks offset against economic- and resource-related returns.

Originality/value

The authors contribute to a better understanding of entry mode choices of KIS by taking a network perspective that accounts for the combined effects of different network attributes. The four network patterns identified extend current theoretical knowledge on the role of networks for entry mode choices of small KIS by highlighting that entry mode choices reflect the particular firm’s focal net and its attempt to achieve insidership status through high centrality and formal ties.

Details

European Journal of Marketing, vol. 55 no. 7
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 28 January 2014

Dongwen Tian, Rui Li, Wei Yao and Li Huang

The purpose of this paper is to study whether, of China's food and agriculture (agri-food) export, the trade relationships along the extensive margin can transform into short-term…

Abstract

Purpose

The purpose of this paper is to study whether, of China's food and agriculture (agri-food) export, the trade relationships along the extensive margin can transform into short-term ones, and further convert into long-term ones along the intensive margin with survival and maintenance, especially, under what kind of conditions these transformation realize successfully, and what the factors are and how they impact on the length of the trade relationships duration.

Design/methodology/approach

The paper comprises three stages: decomposing China's agricultural export data (1999-2008) into highly disaggregated three distinct parts; with the Kaplan-Meier (KM) nonparametric estimation, discovering the practical source of stable and long-term export growth, and the threshold at which the short-run trade relationships deriving from newly established ones convert into long-run ones successfully; by semi parametric estimation through Cox proportional hazard model, preliminarily examining the possible impact of different factors on the trade relationship's hazard rate and duration.

Findings

The paper reveals that China agri-food trade pattern at the product level is surprisingly dynamic with newly established trade relations being more likely to fail. While the frequent volatilities of short-term relations at the extensive margin could be used to evaluate the source of short-term export growth especially and effectively, the pattern of negative dependence together with the threshold effect of duration indicates, only when these short-term relations live longer than four years will they substantially contribute to a stable and prolonged export growth. Simultaneously, trade duration significantly correlates to importing country's development status, region it belongs to, product processing degree, export experience and geographical space between trading partners.

Research limitations/implications

To avoid the likelihood of misleading when estimating quantitatively the source of long-term export growth, researchers should be cautious in accurately evaluating the impacts of all possible factors on the two trade margins' performances, which is beyond the scope of this paper though, and a matter of ongoing work on the research agenda.

Practical implications

The study presents a set of important policy implications. Now that turnovers along the extensive margin have little impact on long-term China agri-food export growth, it turns out that improving export survival would result in significantly higher and stable export growth.

Originality/value

By distinguishing the survival of trade relationship channels from their deepening, the discoveries in the paper are crucial to understand the different role the intensive and extensive margins play in China agri-food export growth. The diversified hazard rates of export relations in different duration intervals suggest that the constant hazard rate assumption in Melitz and Bernard et al. is in some sense not appropriate.

Details

China Agricultural Economic Review, vol. 6 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 27 July 2012

Assem Reda Abu Hatab, Nada Abdelhamed Shoumann and Huo Xuexi

Bilateral trade between Egypt and China has expanded substantially in recent years. Few studies however have focused on the understanding of this trade relationship. The purpose…

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Abstract

Purpose

Bilateral trade between Egypt and China has expanded substantially in recent years. Few studies however have focused on the understanding of this trade relationship. The purpose of this paper is to fill a void in the literature by examining and understanding the two countries' trade pattern.

Design/methodology/approach

In order to achieve the objectives of the paper, and in the light of the pool of literature and availability of data, the authors relied on qualitative methods to analyze the composition of trade between Egypt and China. In addition, the authors employed trade intensity index, intra‐industry trade index, and examined the trade complementarity to capture the dynamics and perspectives of bilateral trade between the two countries.

Findings

Results show low values in Egypt's trade intensity index, implying that Egyptian trade with China is less than it should be. The low values of the intra‐industry trade index suggest smaller trade between the two countries' firms in the same industry. The study clearly shows that there are few areas where there is an overlap in the two countries' comparative advantage. The trade complementarity analysis tends to suggest that the complementarity for China to export to Egypt is increasing, while that for Egypt to export to China is declining.

Originality/value

Given the lack of research that examines and compares trade between the two countries, the paper provides an in‐depth understanding of the patterns of trade between them and the driving forces behind such dynamics, which is pertinent to best capture the opportunities presented by the Chinese market. Also, the findings can be used to draw policy implications for promoting future trade and cooperation between Egypt and China.

Details

Journal of Economic Studies, vol. 39 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

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