The key factors of export intensity in Tunisia: A Logistic regression with random effect model

Given the growing international competition and globalization being characterized by the massive reduction of institutional barriers, opening new markets for consumer goods, the birth of many trade agreements and the establishment of the World Trade Organization, it is imperative for companies wishing to grow, the possibility to internationalize. Consequently, one of the first modes of internationalization of a firm is export. Indeed, the success of export can be measured by various factors that depend on company's goal against the use of export strategy. Such factors are grouped into two categories namely: external and internal factors to the company. This paper will focus on exploring and analyzing the key factors that affect the export intensity of Tunisian companies. Thus, our study was conducted at the micro-economic level. Indeed, as the available data, we will try to find out the factors of export activity for a sample of Tunisian companies and this through a Logit model with random effects applied to panel data from 1997 to 2003. Indeed, the main factors that positively affect the probability of exporting in Tunisia are: Capital intensity; the company age and size. Furthermore, among the main factors that negatively affect the probability of exporting, we state labor cost.