The Propensity And Intensity Of Export Activities Of Companies Operating In Europe

Abstract

Previous studies have explored the substantial benefits for companies and governments of exporting. Nevertheless the role of government has been analysed mainly trough export promotion programs and the importance of the subsidiaries of multinational companies to increment a country exports has not been tested together with other variables present in the literature on export performance. This research examines the export performance of companies in Europe. A sample of 239 companies in 12 countries was analysed and their level of exports was examined, using Logit and Tobit models. The contextual variables of the country of operations were combined with company characteristics, including dimension, age, and industry affiliation. The results show that foreign affiliation, age, country of operations and industry are important and that government efficiency is a key element to companies’ propensity and intensity of export.