Export Competitiveness, Firm Behaviour and Obstacles for doing Business

The overall economic framework, the amount of foreign direct investments, the regulatory context, firm behaviour and the intensity of competition are among the factors that have an impact on a country's export competitiveness. Due to the ever-increasing engagement of firms in export activities, it seems of particular relevance to examine the relationship between different determinants of a firm behaviour and its export intensity. The objective of this paper is to emphasize the relationship between different factors affecting the export competitiveness. The paper proposes and empirically tests a model for analysing the export intensity of firms from selected transition economies. The sample predominantly consists of medium sized firms established in the course of transition. The results of the Tobit analysis indicate that larger firms participate with higher intensity on the international market. Business experience seems to be a less important determinant of export success. Price based competitiveness has an important role in the ability of firms from the sample to compete. In addition, firms which have discontinued some of their product lines have higher export intensity. Outsourcing of activities, technology transfer, the use of the Internet and quality certificates have a positive impact on firm's export intensity. Competition and customs and trade regulations seem to be the most important obstacles for doing business.