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The Direct or Indirect Exporting Decision in Agri-food Firms

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ABSTRACT

Selecting an export channel is one of the most important strategic decisions for any exporting agri-food firm. This paper presents a unified theoretical framework, integrating the two decisions (i.e., the export decision itself and the export channel decision) by jointly examining the effects of 1) intangible resources, 2) product quality, 3) firm size, and 4) international experience on the probabilities of these decisions. Our findings, obtained by analyzing the export behavior of 177 firms in the DOC Rioja (Spain) wine industry, can help policy-makers understand how they should promote exports and the export channels for agri-food firms. [JEL: Q170, M200].

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