Seeking to Understand the Export DNA: Third Edition – November 2022
Author: Basco, Ana Inés
Executive Summary
The Inter-American Development Bank’s (IDB) Institute for the Integration of Latin America and the Caribbean (INTAL), within the Integration and Trade Sector (INT), conducted the third edition of its Survey of Exporting Firms in Latin America and the Caribbean (LAC). The objective of the study was to gather evidence on the export performance of firms across the region, assess the challenges posed by the war in Ukraine, understand the support measures provided by governments, and examine companies’ expectations regarding the future of their businesses.
The main findings of the study are summarized below:
- Sustained Export Performance:
Forty-three percent of firms reported year-on-year export growth during the first quarter of 2022, surpassing the 35% recorded in 2021. However, challenges remain, particularly for microenterprises and firms in the primary sector. - Improvement in International Logistics:
Although 60% of firms experienced transportation and freight-related difficulties during the pandemic, half of them managed to overcome these obstacles between 2021 and 2022. - Impact of the War in Ukraine Mainly Through Prices:
One-third of firms reported being affected by the conflict, primarily through increases in input and product prices rather than direct disruptions to logistics or trade flows. - Greater Intra-Regional Trade Integration:
Sixty percent of firms reported exporting to countries within Latin America and the Caribbean, reflecting a growing trend toward market diversification and reduced dependence on a single export destination (from 40% in 2020 to 17% in 2021). - High Level of Business Proactivity:
Eighty-eight percent of firms implemented measures to strengthen their export performance, including exploring new markets, making internal investments, and adopting e-commerce tools. - Normalization of Government Assistance:
Fifty-nine percent of firms indicated that they had not received government support in 2022, a figure consistent with pre-pandemic levels. Nevertheless, firms continue to demand tax incentives and technical assistance. - Growing Demand for Trade Agreements:
Eighty percent of firms expressed interest in new trade agreements, particularly within the region, followed by agreements with the United States, Canada, and Europe. - Moderation in Export Growth Expectations:
Although 43% of firms expected export growth in 2022, this was lower than the 57% recorded in 2021. Micro and small enterprises showed less optimistic expectations than medium-sized and large firms. - Stabilized Use of E-Commerce:
One-third of firms use e-commerce as an export channel, with adoption being more common among microenterprises. Among those not yet using it, 29% plan to implement it in the near future. - Positive Investment Outlook:
Seventy-three percent of firms expect to maintain or increase export-oriented investments over the next three years despite global uncertainty. - Persistent Gender Inequality in International Trade Functions:
Only 32% of international trade departments are led by women. However, teams led by women tend to exhibit greater gender balance within their staff. - Capacity Building in International Trade:
Seventy percent of firms have personnel trained in international trade functions, and more than half maintain dedicated departments responsible for these activities. - Growing Importance of Environmental Sustainability:
Seventy-five percent of firms believe that their customers value environmentally responsible practices, and the majority consider themselves capable of adapting to these expectations. Firms in the primary sector demonstrate the highest willingness to adopt sustainable practices.