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 Heckman selection model to estimate the probability of ex...

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Bibliographic Details
Main Author: Francisco, Manuela
Other Authors: Dayoub, Mariam, Correa, Paulo
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2007
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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245 0 0 |a Identifying Supply-Side Constraints To Export Performance In Ecuador  |h Elektronische Ressource  |b An Exercise With Investment Climate Survey Data  |c Francisco, Manuela 
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653 |a Macroeconomics and Economic Growth 
653 |a E-Business 
653 |a Microfinance 
653 |a International Economics & Trade 
653 |a Competitors 
653 |a Private Participation in Infrastructure 
653 |a Firms 
653 |a Free Trade 
653 |a Foreign Market 
653 |a Firm Size 
653 |a Emerging Markets 
653 |a Currency 
653 |a Dominant Firms 
653 |a Business Environment 
653 |a Law and Development 
653 |a Foreign Direct Investment 
653 |a Infrastructure Economics and Finance 
653 |a Debt Markets 
653 |a Private Sector Development 
653 |a Small Scale Enterprises 
653 |a Trade Law 
653 |a Finance and Financial Sector Development 
653 |a Economic Theory and Research 
653 |a Firm 
653 |a Entrepreneurs 
653 |a Expansion 
653 |a Employment 
653 |a Enterprises 
700 1 |a Francisco, Manuela 
700 1 |a Dayoub, Mariam 
700 1 |a Correa, Paulo 
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520 |a 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