FINANCIAL INCENTIVES TO EXPORTING SMEs IN EMERGING MARKETS.

Abstract

The purpose is to analyze whether use of government incentives by exporting SMEs in Brazil helps them increase their degree of internationalization (DOI) and/or improve their export performance. The regression model reveals that greater use of financial incentives was related to higher DOI and better performance. However, the variable percentage of sales financed had a negative influence on DOI, on export performance and on international competitiveness, showing that the lower the percentage financed, the higher the DOI.