We combine data on time needed for export to take place from the Doing Business database with the information from the Enterprise Surveys. It enables us to assess the impact at the firm-level where the evidence is limited due to data availability. It also avoids using firm perception from survey data to measure regulatory environments, thereby reducing potential bias.

# **Exporter Status, Export Intensities and Firm Characteristics**

We draw information on firm performance from the World Bank Enterprise Surveys. The surveys are designed to assess the investment climate of developing economies. Each survey is based on a standardized set of survey instruments and uses a similar methodology: stratified random sample of establishments<sup>13</sup> . For simplicity, we will refer each establishment-year observation as a firm. We dropped observations that report missing information or inconsistent information for outputs and inputs. The final sample covers 21336 firms from surveys conducted over 2002-2008<sup>14</sup> . The data on exporter status, shares of exports in total sales, shares of foreign ownership, and firm age are available from the surveys. We use total outputs, wage bills, material costs, value of capital stocks and employment sizes to calculate value-added per labor and capital intensities. The values are converted into 2000 US dollars using exchange rates and inflation rates from “International Financial Statistics” published by the International Monetary Fund. Appendix 3 presents the summary statistics.

The final sample covers 64 developing economies. For 12 countries, surveys conducted in two years are included. The shares of exporters and export intensities vary considerably across countries (Appendix 1). Less than 5 percent of the surveyed firms export in Algeria, Burundi, Ethiopia, and Mozambique. By contrast, more than 60 percent of the selected firms from South Africa, Thailand, Turkey, and Malaysia are exporters<sup>15</sup> . The average share of exporters is 39 percent with a standard deviation of 19 percentage points. The export intensities of exporters display a similar pattern. The mean value is 21 percent while the standard deviation is 18 percentage points.

The observations are classified into 13 manufacturing industries in the original surveys (Appendix 2). 39 percent of all the firms export. Among exporters, foreign sales, on average, stand for 53 percent of total sales. There are clear distinctions across industries. Half of the surveyed firms export in garment industries and more than three quarters of sales are foreign sales. This is followed closely by electrical and electronics (E&E), leather, and textile industries in which more than 40 percent of firms sell to foreign markets and average export intensities exceed 50 percent. By contrast, only one-quarter of firms in beverage industry enter foreign market. In paper and wood production sectors, the shares of exporters are also small, close to one third. In terms of other characteristics, 16 percent of firms are foreign owned<sup>16</sup> . Two-thirds of firms are small- and medium-sized enterprises (SMEs)<sup>17</sup> . The average employment size is about 200.

> 13 For more information on the methodology of the survey, see the Enterprise Surveys website http://www.enterprisesurveys.org/

> 14 Most surveys do not have panel structure.

> 15 More than 100 firms are kept in the final sample for all the above countries,.

> 16 Foreign owned is defined as companies with over 10 percent of foreign equity.

> 17 SMEs are defined as those that employ less than 100 workers.

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