UK Export Behaviour at the Firm Level

We estimate Probit and truncated regression models that incorporate the key theoretical explanations of firm-level export activity for a panel of UK firms over the period 1988 to 2001. Results support the resource-based, human capital and technological innovation explanations of firm-level export activity. In addition, we find that the level of the Sterling-Dollar exchange rate has a significant impact on both the decision to export and the level of export intensity, although the volatility of the exchange rate is found to vary between industries.