Export Performance of Greek Ma¬nufacturing Companies. Export Subsidies and Other Factors

The analysis gives emphasis both to the microeconomic factors affecting each company's export performance and to government policies for the promotion of exports. Following the presentation of the background of the export promotion policy implemented in Greece, econometric analysis is used to test f or the factors affecting export performance of Greek manufacturing firms. The results obtained indicate that state policies in fact had the opposite effects. These effects may be seen in combination with the lack of measures, to improve competitiveness, on the part of the firms, and to create export infrastructure, on the part of the State. Subsidies formed the basic retarding factor in such changes. Furthermore, export performance seems to he inversely related to the firms’ size and directly related to capital intensity and to import propensity. The latter contributes to instability f or export firms. The need is f or a substantially better export performance which in turn requires changes both at company and government level.