Explaining export assistance needs of a firm from firm characteristics

At the end of the twentieth century, more and more export opportunities have been made available to firms in the United States. Experienced exporting firms, as well as firms that had never exported before, now have a new global marketplace in which they can sell their products. However, many of these firms may require government assistance in exporting their goods. The United States government has several agencies that provide a wide array of export assistance to U.S. firms. Yet the question of whether the firms who need government aid are actually receiving the assistance that they perceive as necessary remains unanswered. Therefore, this study examines the probability of a firm's need for export assistance based on the firm's characteristics. Data for this study were collected from a survey of firms that participated in the 1993-94 Market Promotion Program. Questions were asked concerning firm's perception of export assistance and the firm's characteristics.

The results of this study showed that firm size and exporting experience are the two most common characteristics that affect the probability that the firm has a certain level of need for export assistance. The results suggested that smaller, less experienced exporting firms have an increased probability of needing certain assistance. The results also indicate that larger, more experienced exporting firms have an increased probability of not needing assistance concerning certain areas of government assistance.