The Determinants of Firm-Level Export Performance

Abstract

Most previous empirical studies of international trade have focused on the export behaviour of industries in developed and developing countries highlighting the contributions made to export competitiveness by factors like capital, skills, technology and economies of scale. Only a few studies, however, attempt to test econometrically factors affecting export activity at firm-level but no studies exist on Sri Lanka. This chapter examines the determinants of firm-level export performance in Sri Lanka focusing on factors deriving from theories of comparative advantage. Section 9.2 reviews available econometric studies of firm-level export performance. Section 9.3 sets out a ‘general to specific’ econometric model based on cross-section data for 27 exporters and the results. Section 9.4 looks at features of leading exporters and section 9.5 summarizes.