Handbook of Research on International Entrepreneurship
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Handbook of Research on International Entrepreneurship

Edited by Léo-Paul Dana

This unique reference book provides an array of diverse perspectives on international entrepreneurship, a new and emerging field of research that blends concepts and methodologies from more traditional social sciences. The Handbook includes chapters written by top researchers of economics and sociology, as well as academic leaders in the fields of entrepreneurship and international business. State-of-the-art contributions provide up-to-date literature reviews, making this book essential for the researcher of entrepreneurship and the internationalisation of entrepreneurs.
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Chapter 33: Internationalization and Size, Age and Profitability in the United Kingdom

Graham Hall and Ciwen Tu


33 Internationalization and size, age and profitability in the United Kingdom Graham Hall and Ciwen Tu Exports represent about 30 per cent of the Gross Domestic Product of the United Kingdom. Hardly surprisingly, improving export performance has been regarded as important by successive governments, a sentiment exemplified by Lord Clinton Davis (1998), then Minister of Trade: The importance of exporting to Britain’s economy cannot be overstated. Not only does it contribute to our economy, earning the revenue that helps to pay for the standard of living and quality of life we all want, exporting is also the best way of sharpening our competitive edge. The factors associated with the degree of export activity are clearly of relevance to the formulation of industrial policy. Here we consider three candidates: size, age and profitability. We are concerned to establish whether they are related to the proportion of a company’s sales that it exports, the export ratio or the decision to export at all, the export propensity. Our study encompasses firms of all sizes but particular attention is devoted to small firms. All models and tests are carried out at sector level because of the strong possibility that industry characteristics could influence the strength of relationships. The first section of this chapter will briefly justify our choice of relationships; the second will describe our data and methodology; the third will report our results on the strength of the relationship between the explanatory variables and the export ratio; the...

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