The determinants of export performance: A firmlevel study in Italian Manufacturing

This paper analyses the main determinants of a firm's probability to export and export intensity and presents the findings of an empirical study carried our for a large sample of Italian firms. Among these determinants, the study considers the firms' size and industry, the geographical location, the working as a subcontractor, and the affiliation with business groups. Moreover, along with R&D intensity, other qualitative indicators of innovation are taken into account. On the basis of Probit and Tobit estimates, it emerges that the determinants of export performance change according to the size of firms. In particular, only for small firms the relationship between size and export performance is positive. The export probability and intensity of SMEs decrease with the share of sales due to subcontracting. Larger firms, instead, benefit more from being affiliated with business groups. Finally, innovative activities are particularly effective in raising the export performance of medium-sized and large firms.