ICT and export performance: Firm-level evidence from Türkiye


Kaya H., Gönel F.

Finans Politik ve Ekonomik Yorumlar Dergisi, no.668, pp.9-35, 2024 (Peer-Reviewed Journal)

  • Publication Type: Article / Article
  • Publication Date: 2024
  • Journal Name: Finans Politik ve Ekonomik Yorumlar Dergisi
  • Journal Indexes: TR DİZİN (ULAKBİM)
  • Page Numbers: pp.9-35
  • Yıldız Technical University Affiliated: Yes

Abstract

This study analyzes the impacts of information and communication technologies (ICTs) on the export behavior of Turkish firms. We combine five firm-level data sets compiled by Turkish Statistical Institute and construct an unbalanced panel data set covering the period 2009-2019 for firms operating in manufacturing industry. We use enterprise resource planning (ERP) as the proxy for the firm's ICT capacity, which is a more sophisticated indicator than the tools commonly used in the literature such as internet, e-mail and website. We estimated both pooled probit and random effects (RE) probit models as well as the dynamic panel probit model that allows us to control for sunk costs associated with export market entry. Our results from pooled and RE probit models confirm that ERP is positively and significantly associated with the probability of firms being exporters. The results of the dynamic model confirm the existence of hysteresis in export market.