DISCUSSION PAPER SERIES NO. 2006-18
The paper determines the factors affecting the export performance of firms in three main manufacturing sectors in the Philippines. Specifically, firm-level characteristics like firm size, firm age and foreign affiliation are identified and statistically tested to determine if it affects a firms capability to export. The study uses a novel econometric model which specifically addresses fractional response behavior and estimates the model using a modified quasi-maximum likelihood procedure. Among the firm-level characteristics tested, foreign affiliation has the most prominent influence on a firms propensity to export.