Profile of exporting companies in Paraíba: A field study

Abstract

The first 14 years of the second millennium were marked by commercial expansion and the recovery of Brazilian exports, which, in the 1990s, suffered from the changes brought about by the commercial and financial opening. In the same period, that is, between 2000-2014, Paraíba had around two hundred exporting companies, with exports in the state growing around 130% in this period and imports growing practically three times more, around 337%. The trade balance had been showing increasing deficits since 2007. Due to this mismatch, this research aims to outline the profile of the comparative advantages of exports in the state of Paraíba, between 2000-2014, observing which are the main problems faced by the largest exporting companies in the export process. The used methodology was a field study that resulted in qualitative and quantitative research through the application of a semi-structured questionnaire over two years with exporting companies in the state. The questionnaire was applied to a sample of 30 exporting companies. The data were analyzed in a descriptive manner and the results point to companies with a traditionalist and privately held profile. The volume of exports between 2000 and 2014 proved to be very sensitive to external shocks due to the dependence on few partners. The main exporting sectors are textiles, sugar and alcohol, footwear, sisal and mining. There is a substantial concentration of exports as the State's exports are located in a few municipalities and in a few companies. It is also concluded from the field research that while many companies closed, others reduced the export rate due to low government incentives. Likewise, the financial crisis of 2008 was one of the factors that have impacted Paraíba’s export performance.