Firm Characteristics Influencing Export Propensity: an Empirical Investigation By Industry Type

This study examines 20,204 manufacturers in a midwestern state to determine whether firm characteristics significantly influence the propensity to export. By examining census data, the researchers seek to address the speculation that the lack of representativeness of previous studies has skewed the interpretation of the influence of firm characteristics on export propensity. The variables examined are number of employees, total sales, years in business, international trade activity (exporter/nonexporter), primary industrial classification, and firm ownership. The results of the study indicate that the value of using firm characteristics to predict export behavior varies by industry.