Few big companies dominate global export markets – World Bank

A new database released by the World Bank May 24, 2012 shows that few large companies dominate the export markets in developing and developed countries.

The World Bank’s Exporter Dynamics Database which has a wealth of details on exporting firms noted that one percent of big firms often accounts for more than half and sometimes nearly 80% of total exports.

A key point highlighted by the database was that the “export market is difficult to tackle for newcomers, with 57% of companies on average – and two-thirds in Africa – quitting within a year of entering the export market”.

Task leader of the World Bank database, Ana Margarida Fernandes said “Governments traditionally have focused on helping exporters expand to new products and new markets, but they may need to do more to help firms survive.”

The new database mainly covered 2003-2009 though data from the 1990s were also available. It allows for cross-country comparisons of exporters based on factors such as size, survival, growth, and concentration.

The World Bank believes that the Exporter Dynamics Database could help policy makers identify opportunities in particular sectors and address challenges faced by their exporters, especially in their entry and survival in export markets.

“For example, it can be used to analyze the performance of export sectors in a country, comparing them with their counterparts in the region or richer countries,” it added.

The database can also make it easier to analyze the impact of tariffs and other trade barriers, the Bank noted.

By Ekow Quandzie