The Impact of Barriers on Export Behavior of a Developing Country Firms: Evidence from Tanzania

Mursali Milanzi


The purpose of this paper is to identify main export barriers and to test empirically their impact on export
behavior. A survey of 122 manufacturing firms was conducted in Tanzania between October 2008 and February
2009. The survey data were analyzed using factor analysis and the Tobit regression model. Factor analysis
identified five significant barrier factors: lack of export market knowledge and information, export supply
capacity constraints, inadequate export financing, inefficient regulatory framework, and poor infrastructure. The
impact of the barriers on export behavior was then tested using the Tobit regression model. The results of the
Tobit estimation indicated that the lack of export knowledge and information, limited finance, and poor
infrastructure significantly affect export behavior. Interestingly, the significant barriers have had a
disproportionate effect on the probability of exporting and the level of export intensity. Finally, the paper
concludes and discusses the implications of the findings for policy, practices, and research.

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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