Are Firms Exporting to China and India Different from Other Exporters?

35 Pages Posted: 16 Mar 2012

See all articles by Giorgio Barba Navaretti

Giorgio Barba Navaretti

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM); University of Milan - Centro Studi Luca d'Agliano (LdA)

Matteo Bugamelli

Bank of Italy

Riccardo Cristadoro

Bank of Italy

Daniela Maggioni

Università Politecnica delle Marche

Date Written: February 16, 2012

Abstract

This paper asks whether and why advanced countries differ in their ability to export to China and India. We exploit a newly collected, comparable cross-country survey of 15,000 European manufacturing firms (EFIGE). The dataset contains information on firms’ international activities and characteristics such as size and productivity, governance and management structure, workforce, innovation and research activity. We identify the firm characteristics that are correlated with exporting activity in general as well as with exporting to China and India conditional on being an exporter. In line with existing literature, we prove that larger, more productive and innovative firms are more likely to become exporters and to export more. Our results also provide new evidence on the role of governance: while there is not a strong negative effect of family ownership, a higher percentage of family management reduces a firm’s export propensity and export volumes. Regarding China and India, we find that firms exporting there are on average larger, more productive and more innovative than firms exporting elsewhere.

Keywords: exports, productivity, firm size, management

JEL Classification: F1, L2, M2

Suggested Citation

Barba Navaretti, Giorgio and Bugamelli, Matteo and Cristadoro, Riccardo and Maggioni, Daniela, Are Firms Exporting to China and India Different from Other Exporters? (February 16, 2012). Bank of Italy Occasional Paper No. 114. Available at SSRN: https://ssrn.com/abstract=2023175 or http://dx.doi.org/10.2139/ssrn.2023175

Giorgio Barba Navaretti

University of Milan - Department of Economics, Management and Quantitative Methods (DEMM) ( email )

Via Conservatorio, 7
Milan, 20122
Italy
+390250321521 (Phone)

University of Milan - Centro Studi Luca d'Agliano (LdA) ( email )

Via Donizzatti 38
Milano, Mi 20122
Italy
+39 02 36683850 (Phone)

Matteo Bugamelli

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Riccardo Cristadoro (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Servizio Studi
00184 Roma
Italy
+39 06 4792 3341 (Phone)
+39 06 4792 3720 (Fax)

Daniela Maggioni

Università Politecnica delle Marche ( email )

Piazzale Martelli 8
Ancona, 18039
Italy

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