Determinants of exportability: The case of clothing and footwear sector

Abstract

This paper examines the determinants of export performance of firms in the Greek manufacturing industry, using cross sectional data from 74 firms for a 5-year period (2007-2011). The study concluded that in order to boost profitability, special attention should be given to the company’s age of business, its profitability and its liquidity. The research indicates that before the financial crisis the companies were highly dependent on the internal market, something that was reversed during the crisis period due to the declining demand. Therefore, companies must be directed to develop a most extroverted policy by expanding their activities in foreign markets.

Keywords: Clothing and footwear sector, exports, profitability, crisis, exportability.