DETERMINANTS OF AGRO-BASED MANUFACTURING FIRMS' DECISION TO EXPORT TO DIFFERENT DESTINATIONS

Abstract

The study analysed the determinants influencing agro-based manufacturing firms’ decisions to export to different destinations. A simple random sampling technique was employed to select 127 firms from a population of 186 accessible agro-based exporting firms in Nigeria. Primary data were collected using structured questionnaires and analysed using Multinomial Logistic Regression (MLR). Results of the Multinomial Logistic Regression revealed that export to the EU and the USA was consistently and significantly determined by firm size (0.103, p=0.000), education (0.132, p=0.050), experience (0.089, p=0.050), management characteristics (0.573, p=0.000), export marketing strategy (-1.692, p=0.000) and domestic market characteristics (-1.272, p=0.000). Export to Asian countries showed that export sales (0.0929, p=0.071), firm size (-0.1950, p=0.053), education (0.0889, p=0.014), age of the firm (0.2394, p=0.001), export market characteristics (-2.0812, p=0.000) and foreign market characteristics (-0.0438, p=0.000) are the prime and significant determinants of agro-based export to Asia. Export to East Africa was influenced by export sales (0.946), education (0.060), management characteristics (0.396), export marketing strategy (1.185) and domestic market characteristics (-1.514) while export to North African destinations is influenced by education (1.112), age of firm (0.184), firm characteristics (3.003), export marketing strategy (1.1843) and domestic market characteristics (-2.150). The study concluded that, export decisions are primarily driven by firm-specific capabilities and market conditions. Managerial education and management characteristics were consistently significant across all destinations, highlighting the importance of human capital in export performance. The study recommends policies aimed at strengthening firm capacity and improving trade relations, particularly with developed markets like the EU member countries.