Export propensity and intensity of Nigerian SMEs

Abstract

The objective is to identify the determinants of export propensity and intensity of small and medium enterprises (SMEs) in Nigeria. It estimated an export model for SMEs, comprising a system of two equations, one export propensity and the other for intensity. The analysis revealed that firm age, labor productivity, access to loan and infrastructure are robust determinants of export propensity. In addition, the results confirmed that firm age, labor productivity, capital intensity, skill intensity, access to loan, managerial experience, and infrastructure increase the export intensity. Estimating such determinants of SME export intensity and propensity provides the direction for policy discussions.

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