Firm characteristics and export propensity: a comparison of manufacturers and manufacturing-based service providers

This study examines 20[punctuation space]204 manufacturers in a Midwestern state to determine whether the influence of firm characteristics on the propensity to export differs for manufacturers and manufacturing-based service providers. 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 whether or not a manufacturer exports. The variables examined are number of employees, total sales, years in business, international trade activity (exporter/non-exporter), and firm ownership. The results of the study indicate that the value of using firm characteristics to predict export behavior differs for manufacturing firms and manufacturing-based service providers.