University of Ulster NISRA BDR Programme
Lead Research Organisation:
University of Ulster
Department Name: Ulster Business School
Abstract
The proposed research aims to improve our understanding of the relationships between firms' engagement in markets external to Northern Ireland (NI) and their performance. The overall aim of the project would be to develop a new evidence base which adds to current knowledge about the role of exporting and importing, and those firms engaged in such activities, within the NI economy.
Our central research questions are:
RQ1: What relationship is there between firm/sector characteristics and internationalisation (both exporting and importing) for NI firms?
RQ2. What can we say about the contributions of extensive (numbers of market sold to or imported from) and intensive (increasing sales/purchases) margins to overall export growth for the NI economy?
The existing literature in this research field shows how firms engaged in international trade (in the main exporting) tend to be more capital intensive, more innovative, pay higher wages and are more productive than their non-exporting peers. Evidence for this has been shown for NI firms engaged in cross-border trade and for NI exports. Our additional contribution, and of particular interest to those engaged in the 10X Economy policy development, would be the effect of sectoral characteristics (including export intensity, productivity, etc) on the propensity and intensity of exporting by firms in those sectors. We also aim to extend the analysis to examine the effect of importing behaviour, which has received less focus in previous research.
Through this BDR initiative we propose to offer both a very detailed descriptive analysis of export (and import) performance - by market, by sector and by geography - over the 2014-2020 period as well as relating this to economic performance in those external markets and industrial sectors. We will follow this by looking at export strategies at the firm level in order to explain the larger trade patterns that we are seeing in the time series. This will offer some evidence to test out the export promotion and 'pathway to exporting' approaches that have been followed in policy spheres.
The second stage of the analysis, which seeks to analyse the relationship between business characteristics and exporting, and separately identify whether there is an export premia (or import premia) on business performance, will be undertaken via econometric analysis, using standard techniques from the literature.
The project's deliverables will include a main report containing both a descriptive analysis of exporters and non-exporters and likewise, importers and non-importers (by size, detailed sector, priority sector and geography), along with econometric analysis which seeks to analyse the statistical relationship between business and performance characteristics and the various internationalisation status variables i.e. exporting, importing, export intensity, broad export market orientation.
This main report will help support the Department for the Economy (DfE) in their research priorities, specifically in terms of the 10X Economy, by providing an understanding of NI's exporter base. It will enable an up-to-date profile of exporting firms to be established in terms of which characteristics are most associated with exporting and whether this changes depending on the broad market destination, and in terms of the intensity of exporting. It will also enable an assessment of the impact of exporting on business performance, thereby helping to support policy development in this area. Finally, by including analysis of importers, it will provide a more complete understanding of the internationalisation of NI's business population.
Our central research questions are:
RQ1: What relationship is there between firm/sector characteristics and internationalisation (both exporting and importing) for NI firms?
RQ2. What can we say about the contributions of extensive (numbers of market sold to or imported from) and intensive (increasing sales/purchases) margins to overall export growth for the NI economy?
The existing literature in this research field shows how firms engaged in international trade (in the main exporting) tend to be more capital intensive, more innovative, pay higher wages and are more productive than their non-exporting peers. Evidence for this has been shown for NI firms engaged in cross-border trade and for NI exports. Our additional contribution, and of particular interest to those engaged in the 10X Economy policy development, would be the effect of sectoral characteristics (including export intensity, productivity, etc) on the propensity and intensity of exporting by firms in those sectors. We also aim to extend the analysis to examine the effect of importing behaviour, which has received less focus in previous research.
Through this BDR initiative we propose to offer both a very detailed descriptive analysis of export (and import) performance - by market, by sector and by geography - over the 2014-2020 period as well as relating this to economic performance in those external markets and industrial sectors. We will follow this by looking at export strategies at the firm level in order to explain the larger trade patterns that we are seeing in the time series. This will offer some evidence to test out the export promotion and 'pathway to exporting' approaches that have been followed in policy spheres.
The second stage of the analysis, which seeks to analyse the relationship between business characteristics and exporting, and separately identify whether there is an export premia (or import premia) on business performance, will be undertaken via econometric analysis, using standard techniques from the literature.
The project's deliverables will include a main report containing both a descriptive analysis of exporters and non-exporters and likewise, importers and non-importers (by size, detailed sector, priority sector and geography), along with econometric analysis which seeks to analyse the statistical relationship between business and performance characteristics and the various internationalisation status variables i.e. exporting, importing, export intensity, broad export market orientation.
This main report will help support the Department for the Economy (DfE) in their research priorities, specifically in terms of the 10X Economy, by providing an understanding of NI's exporter base. It will enable an up-to-date profile of exporting firms to be established in terms of which characteristics are most associated with exporting and whether this changes depending on the broad market destination, and in terms of the intensity of exporting. It will also enable an assessment of the impact of exporting on business performance, thereby helping to support policy development in this area. Finally, by including analysis of importers, it will provide a more complete understanding of the internationalisation of NI's business population.
Organisations
People |
ORCID iD |
| Karen Bonner (Principal Investigator) | |
| Eoin Magennis (Co-Investigator) |
Publications
| Description | The project funded through this award enabled us to to undertake detailed analysis of the export and import activities of firms in Northern Ireland (NI). This was achieved via the use of the Business Data for Research (BDR) dataset, which had been piloted through this award. The award, and use of the dataset for the first time, enabled us to gain deeper insights into the trading activities of firms than had previously been achieved. It resulted in a better understanding of how the characteristics of firms differ depending on their internationalisation strategy, for example whether they were exporters-only, importers-only or a combination of the two. The results matter to policymakers and related stakeholders as there is a broader strategic economic goal to improve the export performance of the NI economy. This pre-dates EU exit but has become more of a focus since, particularly as NI is the only region of the UK to share a land border with an EU country. Access to detailed data from the BDR dataset matters because this allows an improved understanding and monitoring of performance by policy makers. |
| Exploitation Route | Using the BDR initiative there is potential for further understanding in terms of what makes a business more likely to export, how this impacts their performance over time and what pathways might be taken to enhance this performance and persuade others to take similar steps into internationalisation. The BDR dataset has now been updated and made available by NISRA for further research. |
| Sectors | Creative Economy Manufacturing including Industrial Biotechology Other |
| URL | https://www.adruk.org/news-publications/publications-reports/?tx_llcatalog_pi%5Bfilters%5D%5Bpartnerships%5D=742&cHash=88dc539d328e547a957ce0a045299f02 |
| Description | One of the aims of the project was to beta-test the Business Data for Research (BDR) dataset, before being made more widely available for research purposes. The findings of the Data Explained document were used to help improve the documentation and processes for making the data more accessible. This feeds into the public good aspect whereby administrative data can be made available for research purposes which, in this case, helps to support strategic policymaking in the area of trade in Northern Ireland. |
| First Year Of Impact | 2023 |
| Sector | Government, Democracy and Justice |
| Impact Types | Economic Policy & public services |
| Description | Influence on data accessibility practice |
| Geographic Reach | National |
| Policy Influence Type | Contribution to new or improved professional practice |
| Impact | The BDR dataset is now being made more widely available for research purposes. The data enables new insights to be made on the NI economy enabling more specific and detailed policy recommendations. |
| Description | NISRA Business Data for Research conference |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Policymakers/politicians |
| Results and Impact | This one day conference called "Future Proofing Northern Ireland Business Data for Research" was held on the 8th November 2023. It was organised by Administrative Data Research NI (ADR NI), as part of the Northern Ireland Statistics and Research Agency (NISRA) Research Support Unit, working with NISRA's Economic and Labour Market Statistics (ELMS) branch and the Department for the Economy (DfE). Each of the grant funded project teams, that had won an award under the ADR NI scheme, was asked to present the findings of the research, followed by a Q&A session. This was followed by a roundtable discussion whereby a number of specific data related questions were posed to the participants. |
| Year(s) Of Engagement Activity | 2023 |