Signaling and Technological Marketing Tools for Exporters

Abstract

Besides superior productivity, what
 other firm characteristics are associated with export
 success? This empirical study identifies the effects of
 signaling tools (foreign technical license, International
 Standards Organization certification, and review of
 financial statements) and Internet tools (email and website)
 on export frequency and intensity of firms in developing
 countries. Using data from the World Bank s Enterprise
 Survey, the author finds that productivity, size, foreign
 ownership, International Standards Organization
 certification, and the use of Internet tools have positive
 effects on the probability of exporting and on the intensive
 margin of trade. International Standards Organization
 certified firms are 22 percent more likely to be exporters,
 whereas firms that use their own website to communicate with
 clients and suppliers increase the likelihood they export by
 11 percent. Among exporting firms, those that are
 International Standards Organization certified sell 41
 percent more abroad than firms that are not certified. Firms
 that use email sell 31 percent more in foreign markets than
 exporting firms that do not.