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Factors of Export-Oriented Entrepreneurial Activity

Student: Sushkova Yana

Supervisor: Elena N. Tarunina

Faculty: Faculty of Economics

Educational Programme: Economics (Bachelor)

Year of Graduation: 2017

The aim of this study is to identify the factors influencing the level of export-oriented entrepreneurial activity in the country. This problem is relevant because in the current economic conditions small and medium-sized enterprises have been rapidly increasing their participation in international trade, which can be called a positive tendency in terms of enhancing national wealth. Consequently, governments must provide support for young companies and encourage the development of their export orientation. Thus in order to provide an effective implementation of various stimulating measures it is necessary to determine the key factors, which drive early-stage enterprises to trade overseas. The databases used in the research are: the Global Entrepreneurship Monitor database, the Global Competitiveness Report of the World Economic Forum database and the World Development Indicators of the World Bank database. A panel regression analysis of indicators for 76 countries for the time span from 2006 to 2015 was carried out. The total sample constitutes an unbalanced panel consisting of 684 observations. Due to the presence of high values of pair correlation between the regressors the decision was made to build five different models. For each one of them by means of the Wald test, the Breusch–Pagan test and the Housman test the most adequate model was determined. The results obtained at the study are the following: the level of export-oriented entrepreneurial activity positively relates to GDP per capita, unemployment rate, quality of overall infrastructure, innovative nature of competitive advantage, level of professional training and education of the population and efficiency of customs procedures and negatively relates to inflation rate and the size of the domestic market. These findings have practical significance as they indicate the possible ways of increasing the level of the indicator of interest.

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