Determinants of a Country’s Exports Performance: An Analysis from the Supply-Side

Proceedings of The 6th International Conference on Advanced Research in Business, Management and Economics

Year: 2022

DOI:

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Determinants of a Country’s Exports Performance: An Analysis from the Supply-Side

Mengni Fu

 

ABSTRACT: 

Exports play an important role in a country’s international trade and economic development. Therefore, understanding the factors driving a country’s export performance is crucial. Accordingly, this research examines the impact of three supply-side factors on a country’s export performance, which are foreign direct investment net outflows, population density, and GDP per capita. The secondary cross-sectional data of 35 countries obtained from the World Bank were utilised, and regression analysis was conducted to test the proposed hypotheses and identify the most suitable multiple linear regression model to explain the changes in a country’s exports. Empirical results showed that FDI net outflows and population density have a significant positive impact on exports, whereas the impact of GDP per capita on exports is positive but relatively insignificant. Finally, this research proposes some recommendations to governments, including enhancing a country’s transportation and communication systems and implementing open trade policies to encourage domestic companies to export and invest overseas.

keywords: export performance, outward foreign direct investment, population density, GDP per capita.