Exporting Activity using Manufacturing Firms’ Financial Data: the case of Clothing and Footwear (CFW) Sector

Abstract

Although many empirical studies do exist on firms’ efficiency and exportability level of manufacturing firms, limited research exists on Clothing and Footwear (CFW) sector, especially in Greece. The CFW sector is a vital sector for Greece and can contribute to the startup of the Greek economy. This paper examines the determinants of exporting performance 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 assist profitability, special attention should be given among others to a variety of factors involved, such as firm’s age of business, capital allocation and liquidity ratios as well. The research indicates that before the beginning of financial crisis manufacturing firms were highly dependent on the internal market, something that was reversed during the crisis period due to the declining demand.

Keywords: clothing and foot wear sector, exporting activity, profitability, crisis period