Causes and consequences of exports' channel integration

This paper investigates the decision to export with a proprietary exports channel by Spanish manufacturing firms. The research focuses on the effects of organizational capabilities versus scale economies on the vertical integration decision, and postulates a system of two simultaneous equations to properly evaluate the influence of a proprietary exports channel on the volume of exports. The results show that scale economies are more relevant than organizational capabilities in the decision to vertically integrate, and that, when properly evaluated, the exports mode does not influence the level of exports.