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Why do firms export?

Balázs Muraközy investigates why firms decide to export, and what this implies in terms of our understanding of international trade

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Exporting is an important source of growth for many countries. But what are the factors explaining export activity? What type of policy intervention can favour it? Such questions were traditionally studied at country or industry level but, more recently, detailed datasets available at company (or even company-product) level have enabled researchers to study the characteristics of exporting firms and the factors determining export performance.

Comparisons of exporting and non-exporting firms have revealed a number of interesting patterns that appear in many countries.

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The UK workforce

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Explaining unemployment

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