Search results

1 – 10 of over 43000
To view the access options for this content please click here
Article
Publication date: 1 July 2021

Rizgar Abdlkarim Abdlaziz, N.A.M. Naseem and Ly Slesman

This study aims to investigate the contingent roles real effective exchange rates (REERs) play in mediating the effects of oil revenue on the agriculture sector…

Abstract

Purpose

This study aims to investigate the contingent roles real effective exchange rates (REERs) play in mediating the effects of oil revenue on the agriculture sector value-added in 25 major and minor oil-exporting (MIOEC) countries during the period of 1975–2014.

Design/methodology/approach

The panel autoregressive distributed lag (ARDL) estimator proposed by Pesaran et al. (1999) was relied upon to achieve the objectives of the study. This estimator involves a pool of small cross-sectional units over a long-time span that covers for 25 oil-exporting countries over 39 years (1975–2014).

Findings

This paper reveals the following findings. Firstly, oil revenue has a direct negative effect on agricultural value-added in the short- and long-term. This finding holds for full sample and subsamples of major oil-exporting (MAOEC) and MIOEC countries. Further assessment reveals that the magnitude of the impact is larger for MAOEC than that of the MIOEC. Secondly, the finding for the long-run effect shows that the contingent effect of real exchange rate on the nexus between oil revenue and agricultural value-added is negative and statistically significant at the conventional level for the full sample. This suggests that, in the long-run, the appreciation in real exchange rates exacerbate the negative marginal effects of oil revenue on agricultural value-added in all oil-exporting countries. However, when sub-samples of MAOEC and MIOEC are considered, the contingent effect disappeared (become insignificant) in MAOEC while it is positive and statistically significant in MIOEC. Thus, in the long-run, the appreciation in real exchange rates diminishes the negative marginal effects of oil revenue on agricultural value-added in MIOEC. While oil revenue has a direct negative effect, its effect is also moderated by the variations in REERs in MIOEC in the long-run. Finally, in the short-run, fluctuations in the real exchange rate do not matter for the nexus of oil revenue and agriculture sector in these countries whether minor or MAOEC countries.

Originality/value

This study contributes to the debate in the empirical literature on the Dutch disease effect and “oil curse”. Using the appropriate panel ARDL empirical framework, it provides evidence on how exchange rate variations in the oil-exporting countries influence the nature of the effects of the oil revenue on agricultural sectors in the long-run but not in the short-run. Contingent effects of REERs only appear to exist in MIOEC in the long-run.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

Keywords

To view the access options for this content please click here
Article
Publication date: 16 March 2021

Carlos M.P. Sousa, Ji Yan, Emanuel Gomes and Jorge Lengler

The paper examines the impact of export activity on productivity and how this effect is moderated by R&D investment and foreign ownership.

Abstract

Purpose

The paper examines the impact of export activity on productivity and how this effect is moderated by R&D investment and foreign ownership.

Design/methodology/approach

A time-lag effect is taken into account when examining the proposed model. Data are collected from the Annual Industrial Survey of the National Bureau of Statistics of China. A dataset containing 117,340 firms across the sample period (2001–2007) are used to test the hypotheses.

Findings

The results indicate that while R&D investment plays a significant role in strengthening the positive effect of export activity on a firm's productivity, foreign ownership surprisingly has a negative moderating role.

Originality/value

Scholarly interest in the links between export activity and productivity is on the rise. However, the bulk of research has been focused on understanding the effects of export activity on productivity at the country or industry level. Little has been done at the firm level. Another gap in the literature is that the mechanism through which the impact of export activity can be leveraged to enhance the firm's productivity has been largely ignored. To address these issues, the study adopts the learning-by-exporting theory to examine the relationship between export and productivity at the firm-level and how R&D investment and foreign ownership may explain how learning can be leveraged to enhance the firm's productivity. Finally, these relationships are examined in the context of firms from an emerging market, China, which is especially relevant for the learning-by-exporting argument used in this study.

Details

International Marketing Review, vol. 38 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

To view the access options for this content please click here
Article
Publication date: 25 March 2021

Abdul Rashid, Ataullah Muneeb and Maria Karim

This paper first examines how changes in the real effective exchange rate and its volatility affect the exporting activities of firms. Next, it investigates whether…

Abstract

Purpose

This paper first examines how changes in the real effective exchange rate and its volatility affect the exporting activities of firms. Next, it investigates whether exchange rate volatility (EXRV) affects the export behavior of financially constrained and unconstrained firms differently. Finally, it examines the role of financial development in mitigating the effects of EXRV and financial constraints on firms' exports.

Design/methodology/approach

The empirical analysis of the paper is based on a wide panel of Pakistani nonfinancial firms listed at the Pakistan Stock Exchange during the period 2001–2016. To mitigate the problem of endogeneity and to take into account the dynamic nature of the empirical model, the authors apply the robust two-step system-GMM estimator developed by Blundell and Bond (1998). To examine the role of credit constraints, firm-year observations are sorted as financially constrained and unconstrained based on the median value of three alternative measures: the liquidity ratio, the dividend payout ratio and the Whited and Wu (WW) index.

Findings

The results reveal that an increase in the real effective exchange rate has a positive and significant impact on firms' exports. However, the results show that the EXRV is significantly and negatively related to exporting decisions, suggesting firms considerably decrease their exports during periods of increased unpredictable variations in exchange rates. The findings also suggest that compared to financially constrained firms, the adverse effect of EXRV on exports is weaker for financially unconstrained firms. This finding implies that firm-level financial constraints unfavorably impact exports by making exporting more sensitive to the EXRV. Finally, the findings indicate that financial development not only positively affects firms' exports but also plays a vital role in declining the adverse effects of EXRV on firm-level exports. Specifically, the results show that financial development decreases the negative impact of EXRV on exports for both financially constrained and unconstrained firms. However, the moderating role of financial sector development is higher for financially unconstrained firms.

Research limitations/implications

Notwithstanding that the authors present robust and strong empirical evidence of the effects of EXRV on exporting and on the role of both firm-level financial constraints and financial sector development in formulating these effects, there are some limitations of the study. The authors use a single proxy for measuring financial sector development. However, one may construct an index for the financial sector developed using principal component analysis (PCA) by considering different measures of financial development. The authors use three different measures of financial constraints. Nonetheless, more sophisticated techniques such as switching regression can be used to endogenously determine whether firms are financially constrained. Moreover, an examination of the asymmetric effects of EXRV on exporting across different industries would also be worthwhile.

Practical implications

From a policy point of view, the results suggest that the development of the financial sector and the strategies to lessen credit constraints faced by firms will help in mitigating the adverse effects of the EXRV on the exporting behavior of firms in Pakistan. The findings also suggest that managers in financially constrained firms should apply appropriate hedging strategies to hedge exchange rate risks. Finally, the findings suggest that investors should take into consideration exchange rate dynamics and firms' financial constraints while investing in exporting firms' stocks.

Social implications

Since the findings suggest that financially constrained firms' exports are more exposed to EXRV, managers of such exporting firms are suggested to apply effective and suitable currency risk-minimizing hedging instruments for enhancing their exports. The government should also implement economic and financial policies in such a way that they should help in reducing volatilities of exchange rates and in turn, encouraging firms to export more. Definitely, any policy, at both government and firm level, favoring exporting and export-oriented growth will not only help in overcoming the problem of a persistent and wide trade deficit but also help society by providing more employment and investment opportunities.

Originality/value

Recently, Pakistan has experienced significant declines in foreign reserves, persistent political unrest and enlarged trade deficits. All these have increased the uncertainty about the exchange rate. Therefore, it is valuable to know the EXRV effects on firms' exporting activities. Second, Pakistani firms face more financial constraints, and thus, the influence of financial constraints in formulating the volatility effects on exporting would be worth exploring. Finally, no research has yet taken place to scrutinize the role of financial development in mitigating the adverse effects of EXRV and financial constraints on exporting activities. This paper provides firsthand empirical evidence on the role of financial constraints and financial sector development in formulating the EXRV impacts on firm-level exports in Pakistan.

Details

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

Keywords

To view the access options for this content please click here
Article
Publication date: 15 January 2021

Dafnis N. Coudounaris

This study aims to develop a new internationalisation model to describe the exporting and non-exporting behaviours of small and medium sized enterprises (SMEs) and then…

Abstract

Purpose

This study aims to develop a new internationalisation model to describe the exporting and non-exporting behaviours of small and medium sized enterprises (SMEs) and then applying it to a sample of UK SMEs. The conceptual model consists of four forces leading to a successful business.

Design/methodology/approach

The sample is a stratified one taken from KOMPASS directory and focussing on the Greater Manchester area. In total, 250 firms were chosen to be the population of this survey. In total, 110 surveys were received by email i.e. 24 non-exporters and 86 exporters that were fully completed.

Findings

The four forces of the model include the non-exporting activity, the activity before and after the first export order, differences and similarities between non-exporters and exporters and the regular exporting activity. This model’s findings demonstrate important empirical determinants related to four forces, which, in turn, shape the successful exporting activity.

Originality/value

The empirical evidence from the study suggests that the major differences between non-exporters and exporters, which include the differences in management perceptions towards exporting, and the differences and similarities of firm and management characteristics, explain only to some degree what constitutes successful exporting behaviour. The model is considered useful for smaller businesses located in the UK. The study highlights the importance of firms before and after the first export order, which provides insights for managers of firms about going through with the first export order rather than withdrawing from this effort. The study reveals the motivations for exporting, the timing, the modes through which firms export, firms’ management characteristics and attitudinal differences between exporters and non-exporters, which are essential for practitioners.

To view the access options for this content please click here
Article
Publication date: 8 July 2020

İlayda İpek

Given the fact that emerging economies have idiosyncratic characteristics, international marketing strategies of emerging-market exporting firms have been firmly…

Abstract

Purpose

Given the fact that emerging economies have idiosyncratic characteristics, international marketing strategies of emerging-market exporting firms have been firmly acknowledged to be rather peculiar compared to exporting firms based in developed countries. In this sense, it is therefore incumbent to synthesize the stream of research on international marketing strategy with a particular focus on emerging-market exporting firms. Accordingly, the main purpose of this study is to critically assess the related empirical body of research, and to build a conceptual framework for further development by drawing on the knowledge gaps identified.

Design/methodology/approach

To serve the research objective, this study adopts a systematic literature review methodology. In this sense, 51 articles were content-analyzed as to theoretical underpinnings, scope of research, research methodology, and empirical issues; and a comprehensive conceptual framework and research propositions were developed.

Findings

The findings of this review delineate that the pertinent literature is characterized by some contextual, methodological, and empirical weaknesses. In a nutshell, although the last decades have witnessed a burgeoning interest; the pertinent literature is still at the introductory stage and needs additional improvement.

Originality/value

By addressing the research gap concerning the requirement to synthesize and compile the empirical line of research on international marketing strategy of emerging-market exporting firms, this review study provides novel and valuable insights into the existing knowledge on the subject.

Details

International Marketing Review, vol. 38 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

To view the access options for this content please click here
Article
Publication date: 31 August 2020

Yi Ke, Marios Kafouros and Haifeng Yan

This study aims to investigate how firms’ internationalization activities through exporting influence their organizational learning. Specifically, this study examines how…

Abstract

Purpose

This study aims to investigate how firms’ internationalization activities through exporting influence their organizational learning. Specifically, this study examines how the level of exporting and geographic market scope impact a firm’s exploratory and exploitative R&D investment differently.

Design/methodology/approach

Using a sample of 7,055 firms in Spain during the period 2006–2011, the study uses regression analysis (generalized least squares random effects) to test various hypotheses.

Findings

Although exporting improves organizational learning, learning opportunities vary for different aspects of exporting. Specifically, the level of a firm’s exporting has a significant positive effect on its exploitative R&D investment, whereas geographic market scope of a firm increases its exploratory R&D investment.

Practical implications

The findings can aid in shaping policies and firms’ decisions pertaining to exporting and exploratory and exploitative R&D investment. As the findings indicate that, the determinants of exploratory and exploitative R&D investment are different, managers and policymakers, who aim at a specific type of R&D investment, should understand which exporting strategy they should pursue.

Originality/value

Prior research suggests that exporting improves organizational learning. This study extends this knowledge by showing that different aspects of exporting, specifically, the level of exporting and geographic market scope, drive different types of organizational learning.

Details

Journal of Knowledge Management, vol. 25 no. 1
Type: Research Article
ISSN: 1367-3270

Keywords

To view the access options for this content please click here
Article
Publication date: 2 September 2013

Carlos M. Rodriguez, Jorge A. Wise and Carlos Ruy Martinez

This study aims to examine in the context of high involvement exporting Mexican firms a model which suggests that a blend of absorptive and dynamic capabilities is…

Abstract

Purpose

This study aims to examine in the context of high involvement exporting Mexican firms a model which suggests that a blend of absorptive and dynamic capabilities is necessary to build and sustain their competitiveness in international markets.

Design/methodology/approach

Data were collected from 119 high involvement Mexican exporting firms through informants. Formative and reflective constructs were validated through MIMIC models and confirmatory factor analysis using LISREL. The theoretical model was tested using partial least squares (PLS).

Findings

Results suggest that high involvement Mexican exporting firms' capacity to adapt through product design, technology management, manufacturing processes, and cooperative relationships impacts their innovation and market expansion-adaptation capabilities. Nurturing an entrepreneurship orientation is critical to build flexibility, transfer innovation to markets, and drive export performance. Ultimately, performance is determined by the firms' ability to design and develop products through the adoption of improved technologies, a deep understanding of international demands, and an ability to refocus exporting strategies as changes in competitive contexts require.

Research limitations/implications

The design of exporting capabilities in this study only applies to high involvement exporting firms.

Practical implications

High involvement exporting firms sustain growth through the development of exploration (learning), exploitation (expansion-adaptation), and dynamic (innovation, entrepreneurship) capabilities as determinant of performance.

Originality/value

This is the first model that tests relationships among learning, manufacturing flexibility, and market expansion-adaptation and dynamic capabilities such as innovation and entrepreneurship and their impact on performance in high involvement Mexican exporting firms.

Details

Management Decision, vol. 51 no. 8
Type: Research Article
ISSN: 0025-1747

Keywords

To view the access options for this content please click here
Article
Publication date: 1 February 1985

Attila Yaprak

Introduction Perhaps the most significant economic transformation within the last three decades has been the internationalization of business. From the modest levels of…

Abstract

Introduction Perhaps the most significant economic transformation within the last three decades has been the internationalization of business. From the modest levels of the 1950s, the volume of world trade has exploded to over $2 trillion, and the sales of foreign affiliates of US firms have reached $500 billion by 1983 (Terpstra 1983). Yet, even in the light of accelerated efforts to further stimulate US exporters (e.g., the Export Trading Company Act of 1982), a recent Dunn and Bradstreet survey showed that less than 1% of the US firms had engaged in exporting in 1982 (Trade Marks, 1983). Similarly, the International Trade Administration of the US Department of Commerce has lamented that only 5% of all US manufacturers will have engaged in export marketing in 1984.

Details

International Marketing Review, vol. 2 no. 2
Type: Research Article
ISSN: 0265-1335

To view the access options for this content please click here
Article
Publication date: 1 February 1988

Catherine N. Axinn

Managers' perceptions of exporting are shown to have a critical influence on firm export performance in this study of machine tool manufacturers in the US and Canada. Of…

Abstract

Managers' perceptions of exporting are shown to have a critical influence on firm export performance in this study of machine tool manufacturers in the US and Canada. Of special importance are managers' perceptions of the advantages of exporting over domestic sales, especially perceptions of export‐related growth opportunities. Perceptions of the complexities associated with exporting and managers' work experience overseas are also shown to be related to the percentage of sales a firm obtains by exporting. Possible explanations of these findings are suggested and several implications are discussed.

Details

International Marketing Review, vol. 5 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

To view the access options for this content please click here
Article
Publication date: 20 September 2011

Edward Bbaale

This paper aims to investigate firm‐level interactions between productivity and exporting in Uganda's manufacturing sector.

Abstract

Purpose

This paper aims to investigate firm‐level interactions between productivity and exporting in Uganda's manufacturing sector.

Design/methodology/approach

The paper empirically tested two hypotheses that relate to the dynamic gains from trade and also have tended to dominate the literature; self‐selection and learning‐by‐exporting hypotheses. It employs proxies of self‐selection and learning‐by‐exporting obtained from indices of path dependence to fit maximum likelihood estimates of export behavior.

Findings

The results provide support for both hypotheses and it is also found that more experienced exporters reap more productivity gains from learning effects which is in line with the view that knowledge spillovers to exporting firms increase with the level of interaction in the global market place. Thus, learning‐by‐exporting is not a “short term” occurrence which takes place only in the first few years of entry in export markets after which it would fizzle out as a firm's exporting experience increases but rather, it is a cumulative process.

Practical implications

This paper generates a number of insights that can guide policy makers in designing policies to promote firm productivity growth that is an engine of growth in the private sector and by extension, would fuel up overall economic growth and poverty reduction.

Originality/value

Previous studies on exports and growth in Uganda have been basically focused on macro‐data analysis; yet, promoting rapid expansion of manufactured exports may require more than just a good macroeconomic policy environment. This study fills the research gap by relating firm‐level productivity performance to the microeconomic environment in which manufacturing firms operate.

Details

African Journal of Economic and Management Studies, vol. 2 no. 2
Type: Research Article
ISSN: 2040-0705

Keywords

1 – 10 of over 43000