External and Internal Factors Affecting the Tendency to Import

Abstract

A critical, missing link in our understanding of export marketing is the nature of customer demand. This study examines the effects of internal and external scale economies upon the propensity to import. By examining results of exporting studies with the predictions of advances in trade theory and economic geography, this study finds that large manufacturing firms are more likely to import than small ones, urban manufacturing firms are more likely to import than rural ones, and manufacturing firms in geographically concentrated industries are more likely to import than those in dispersed industries. These findings may help export marketers understand the import behavior of firms who purchase intermediate and semi-finished goods.

Key Words:

• Import
• effects of firm size and location
• internal/external factors
• manufacturing firms
• export