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RESEARCH PRODUCT

The Impact of Barriers on Export Behavior of a Developing Country Firms: Evidence from Tanzania

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The purpose of this paper is to identify main export barriers and to test empirically their impact on export behavior. A survey of 122 manufacturing firms was conducted in Tanzania between October 2008 and February 2009. The survey data were analyzed using factor analysis and the Tobit regression model. Factor analysis identified five significant barrier factors: lack of export market knowledge and information, export supply capacity constraints, inadequate export financing, inefficient regulatory framework, and poor infrastructure. The impact of the barriers on export behavior was then tested using the Tobit regression model. The results of the Tobit estimation indicated that the lack of export knowledge and information, limited finance, and poor infrastructure significantly affect export behavior. Interestingly, the significant barriers have had a disproportionate effect on the probability of exporting and the level of export intensity. Finally, the paper concludes and discusses the implications of the findings for policy, practices, and research.