Performance of small- and medium-sized enterprises in services trade: evidence from French firms

Performance of small- and medium-sized enterprises in services trade: evidence from French firms This paper empirically investigates the key firm- and industry-specific restrictions to the performance of small- and medium-sized enterprises (SMEs) in services trade. For this purpose, we use firm-level data from firms in France operating in different services sectors over the time period 1998–2007 and formulate two-part models consisting of (1) (dynamic) export equations and (2) (dynamic) export share equations. Our results confirm the view that a relatively low share of SMEs engages in services trade. In line with the new-new trade theory, our results also corroborate that more productive SMEs have a higher export probability. The key finding of this paper is that the export decisions of SMEs in services sectors are estimated to be extremely persistent, implying that trade policy efforts, including the allocation of scarce trade promotion budgets, should be directed at addressing the barriers faced in establishing the first export operation. Finally, our sub-sectoral estimates reveal considerable heterogeneity across different types of services. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Performance of small- and medium-sized enterprises in services trade: evidence from French firms

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Publisher
Springer US
Copyright
Copyright © 2015 by Springer Science+Business Media New York
Subject
Economics / Management Science; Management/Business for Professionals; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-015-9647-z
Publisher site
See Article on Publisher Site

Abstract

This paper empirically investigates the key firm- and industry-specific restrictions to the performance of small- and medium-sized enterprises (SMEs) in services trade. For this purpose, we use firm-level data from firms in France operating in different services sectors over the time period 1998–2007 and formulate two-part models consisting of (1) (dynamic) export equations and (2) (dynamic) export share equations. Our results confirm the view that a relatively low share of SMEs engages in services trade. In line with the new-new trade theory, our results also corroborate that more productive SMEs have a higher export probability. The key finding of this paper is that the export decisions of SMEs in services sectors are estimated to be extremely persistent, implying that trade policy efforts, including the allocation of scarce trade promotion budgets, should be directed at addressing the barriers faced in establishing the first export operation. Finally, our sub-sectoral estimates reveal considerable heterogeneity across different types of services.

Journal

Small Business EconomicsSpringer Journals

Published: Feb 20, 2015

References

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