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About this book

Sophie Brown analyzes the impact of the Bangladesh IT association (BASIS) on firm export performance, using unique cross-sectional data from the Bangladesh Evaluation Survey 2016. She aims to build on existing literature and provides empirical insight into the effect of an export association in a developing country in the IT and ITES sector. The hypotheses that BASIS services and training programs positively impact firm export performance, defined as export propensity and export share, are empirically tested using the propensity score matching method. The results show a positive link between BASIS and firm export performance. The services, such as financial services seem to favor an expansion of firms’ export share while training programs, such as the marketing and technical training are associated with an increase of export propensity.

Table of Contents

Frontmatter

Chapter 1. Introduction

Abstract
The relationship between exports and economic growth has attracted much attention in recent decades. Neo-classical theory, strengthened by the Asian Tigers and the general success of the free-market, suggests that exporting leads to growth (Sampathkumar and Rajeshkumar, 2016, p. 33). Three main arguments support the export-led growth theory.
Sophie Brown

Chapter 2. Literature Review

Abstract
In the first section of this chapter, I give an overview of the determinants of export performance. I investigate the internal characteristics of firms to determine which of these characteristics distinguish exporters from non-exporters on a theoretical level. The findings are used to determine the covariates to include in the econometric design. In the second section I summarize the role of export promotion agencies and the current findings from research on their impact on firm export performance.
Sophie Brown

Chapter 3. BASIS and Research Hypothesis

Abstract
Bangladesh gained independence in 1972 and, although the country still counts 47 million people living below the poverty line, it has shown a strong economic performance in terms of growth and development in the last years. After following a socialist approach to economic policy in the 1970s, the government introduced a series of de-regulation reforms and, under the auspices of the World Bank and IMF, proceeded to trade liberalization at the beginning of the 1990s (The World Bank, 2016). Despite its efforts, however, Bangladesh still ranks among the lowest countries in the trade openness indices (The World Bank, 2016) and is considered a relatively closed economy (The Global Economy, 2016).
Sophie Brown

Chapter 4. Data Characteristics

Abstract
In this chapter, I present the characteristics of the empirical data. The first section describes the nature of the data and the sampling characteristics. The second section describes the explanatory variables: services and training programs, and gives an overview of the dependent and control variables.
Sophie Brown

Chapter 5. Empirical Design

Abstract
This chapter introduces the econometric methods used to test the research hypotheses. In section 5.1 I present the OLS method and its limitations. In section 5.2 I present potential methodologies and in section 5.3 I describe the matching method used to address the self-selection bias.
Sophie Brown

Chapter 6. Results

Abstract
This section covers the results. The first subsection 6.1 presents the impact on export propensity and section 6.2 presents the impact on export share. The tables 6.1 to 6.4 present the findings for each treatment. The first two columns show the results using the OLS method; the last three columns show the results of the different matching methods. A detailed overview is presented in appendix D.
Sophie Brown

Chapter 7. Limitations

Abstract
A number of difficulties arise when trying to infer causality and analyze the data correctly. First, there may be an issue of reverse causality. It may be the case that export performance influences firm characteristics.
Sophie Brown

Chapter 8. Conclusion

Abstract
From a theoretical viewpoint, the role of export agencies is vital in countering global market imperfections, and analyzing their impact is of great importance for governments and firm managers. The effectiveness of such agencies on firm export performance, however, varies considerably and empirical studies find differing results. Through this thesis, I have investigated the current impact of the Bangladesh business association BASIS that aims to develop the international orientation of local IT and ITES firms.
Sophie Brown

Backmatter

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