<p>The importance of export as an economic activity and a driver of growth has long been established in various research endeavours. Issues addressed in these studies include quantifying the contribution of export to economic growth, designing appropriate trade and industrial policies, and identifying macroeconomic factors that affect trade performance.</p>
<p>This 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.</p>