Correlates To Export Involvement Of Manufacturing Firms In A Less Industrialized Country

Abstract

Over the past twenty years, considerable attention has been paid to the export behavior and performance of firms. A large share of the literature dealing with this matter consists of empirical studies whose purpose has been to identify the profile of exporting firms, in order to estimate the export potential. Although the environment is the same for all firms within a certain country, some distinguish themselves as exporting firms while others, do not. Thus a fundamental question arises: in what ways do exporting firms differ from non-exporting ones? This paper concludes that the distinction between exporting and on-exporting firms as a clear cut dichotomy is insufficient, and that a firm’s export activity is, to a large extent, related to its international competitiveness. This is especially true for countries such as Greece, where domestic markets are rather limited.