Combined effects of incentives and barriers on firms' export decisions

  • Ramaseshan B
  • Soutar G
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Export researchers have paid considerable attention to export barriers as well as to those variables that encourage firms to become involved in exporting. Almost all export studies have looked at firms' "export or not" decision in isolation, either in relation to incentives to export (firms decide to export if they perceive certain advantages and decide against exports otherwise) or to barriers to export (firms that perceive certain barriers decide not to become involved in exports or decide to export otherwise). However, firms that perceive significant export barriers may still decide to export if the perceived benefits (incentives) outweigh the perceived difficulties (barriers). On the other hand, firms that perceive no export barriers may still decide against exporting because there are few advantages. It seems useful to study the combined effects of both incentives and barriers on firms' export decisions and the present study was designed in an attempt to combine these two aspects within the Australian horticulture industry. The findings of the study suggest that some firms export in spite of barriers and that firms who do not perceive barriers do not necessarily involve in export activity. Copyright © 1996 Elsevier Science Ltd.

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