Overseas business costs and firm export performance

Richard Anthony Kneller (), Mauro Pisu and Zhihong Yu

Canadian Journal of Economics, 2008, vol. 41, issue 2, pages 639-669

Abstract: The recent microeconomic literature on international trade has highlighted the importance of firm characteristics and trade costs for exports. This study provides evidence on one type of those costs, the costs of doing business overseas, from a theoretical and empirical perspective. Controlling for firm- and industry-level covariates, we find that improvements in the business environment of foreign countries lead to an increase in the export intensity of exporters in the UK manufacturing sector and additional export market entry. Further investigation suggests that important determinants of foreign business costs include factors relating to legal structure, property rights, and business regulation.

JEL-codes: D24 F14 F23 (search for similar items in EconPapers)
Date: 2008

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