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Description:
The paper determines the factors affecting the export performance of firms in three main manufacturing sectors in the Philippines. Specifically, firm-level characteristics like firm size, firm age, and foreign affiliation are identified and statistically tested to determine if it affects a firm’s capability to export. The study uses a novel econometric model which specifically addresses fractional response behavior and estimates the model using a modified quasi-maximum likelihood procedure. Among the firm-level characteristics tested, foreign affiliation has the most prominent influence on a firm’s propensity to export.