DETERMINANTS OF EXPORTS OF U.S. AGRIBUSINESS FIRMS

This paper analyzes the effect of firm size, capital intensity, profitability and agribusiness sector classification on a firm’s probability and intensity (i.e. the ratio of export sales to total sales) of exporting with a Tobit model. Our results show that Firm Size, Capital Intensity and Profitability have quite small negative effects on the export probability and intensity of U.S. agribusiness firms. In contrast, to which agribusiness sector a firm belongs show strong and robust impact on its export behavior. The agribusiness sectors we identified imply the comparative advantages of U.S. agriculture