Canadian Small Business Exporters - June 2011

Part 1: Key Statistics on Small Business Exports

This section investigates the importance of small business in international markets by examining the number of exporters of merchandise and the value of exports by industry, province, destination and firm size. Furthermore, this study investigates types of commodities exported by small businesses and changes in their exposure to emerging markets.

1. Exports by Industry

Table 1.1 shows the distribution of the value of exports by industry and size of firm in 2009. In 2009, the total value of merchandise exports by Canadian enterprises was approximately $300 billion.^{Footnote 5} This represents a decline of about $114 billion (27.5 percent) compared with 2008 and of $94 billion (24 percent) compared with 2007. A reduction in the demand for Canadian goods and other effects of the global recession made 2009 a particularly difficult year for exports.

Table 1.1: Distribution of the Total Value of Exported Merchandise by Industry and Size of Business (Number of Employees), 2009¹

Industry Grouping (NAICS)	Total Value($ millions)	Size of Business Enterprise – Number of Employees (percent of total)2
		Total (all business sizes)	Small (<100)	Medium (100–499)	Large (500+)
Source: Statistics Canada, Exporter Register, 2009. Note 1: Data that are confidential are denoted by X. Note 2: Some values were not classified by firm size due to confidentiality; therefore, the totals are calculated as follows: A: Total value of exports (small, medium and large categories) B: Total value of exports (small, medium, large and confidential categories)
Agriculture, Forestry, Fishing and Hunting	3 224	1.2	72.3	9.2	18.5
Mining, Oil and Gas Extraction/Utilities	A: 42 671 B: 44 356	15.4	13.6	8.6	77.8
Construction	1 407	0.5	71.3	23.7	5.1
Manufacturing	A: 165 032 B: 169 233	59.7	12.1	22.3	65.6
Wholesale Trade	30 793	11.1	70.0	20.9	9.0
Retail Trade	1 753	0.6	79.1	3.9	17.0
Transportation and Warehousing	A:  341 B: 18 196	0.1	x	100.0	x
Information and Cultural Industries	498	0.2	52.8	43.1	4.1
Finance and Insurance	9 851	3.6	62.2	6.8	31.0
Business Services	17 504	6.3	41.4	8.0	50.6
Other	3 485	1.3	72.0	19.2	8.8
Industry Aggregate Total	A: 275 557 B: 300 298	100.0	24.7	18.4	56.9
	Total Number of Firms		Small (<100)	Medium (100–499)	Large (500+)
All Industry Exports	A: 36 154 B: 38 675		86.2	10.7	3.1

In 2009, about 86 percent of Canadian exporters were small businesses compared with 85 percent in 2008 and 87 percent in 1999. More importantly, small businesses were responsible for $68 billion (25 percent) of the total value of exports in 2009, with an average value of $2 million per firm. Medium-sized businesses accounted for $51 billion (18 percent) of the total value of exports in 2009, with an average value of $13 million per firm. Large businesses accounted for $157 billion (57 percent) of the total value of exports, with an average value of $139 million per firm.

Small business' contribution to the total value of exports decreased by 2.5 percentage points in 2009 compared with 1999, while that of medium-sized firms increased by 8.7 percentage points. The contribution of large firms to the total value of exports decreased by 6 percentage points over the same period.

The proportion of small businesses that export (1.4 percent) is lower than the proportion of small businesses in the overall economy (98 percent). In 2009, 27 percent of medium-sized businesses and 40 percent of large businesses exported. About 2 percent of small and medium-sized enterprises exported goods in 2009.^{Footnote 6} They accounted, however, for over 40 percent of the overall export value in 2009.

Small businesses contributed only about 12 percent to total manufacturing exports compared with 66 percent from large firms. In most other industries, however, small businesses made the largest contribution to exports. The largest contributions were in retail trade (79.1 percent), agriculture, forestry, fishing and hunting (72.3 percent) and other sectors (72 percent).

2. Exports by Destination

2.1. Top 20 Destinations

Table 1.2 shows the contribution to the value of exports in 1999 and 2009 for the top 20 export destinations, by firm size. In both years, the top two export destinations for all Canadian exporters were the United States and the European Union (EU). Japan was third in 1999, but was replaced by China in 2009. The percentage of the total value of Canadian exports to the United States has decreased from 87 percent in 1999 to 78 percent in 2008 and 75 percent in 2009. The value of exports to the EU, on the other hand, has increased from 4.6 percent of the total value of exports in 1999 to 8.7 percent in 2009, with the top three EU export destinations in both years being the United Kingdom, Germany and France. The value of exports to Japan has remained the same in both years at 2.5 percent. There has been an important increase in the value of exports to China, representing 0.8 percent of the total value of Canadian exports in 1999 and 3.2 percent in 2009.

Table 1.2a: Top 20 Export Destinations, Value (Percent) of Exports, by Firm Size (Number of Employees), 1999¹

Country	Small (<100)	Medium (100–499)	Large (500+)	All Firms
	1999
Source: Statistics Canada, Exporter Register, 2008 and 2009. Note 1: Data that are confidential are denoted by X. Note 2: See Table 1.4 for the breakdown of exports by U.S. region. Note 3: The values for small, medium-sized and large enterprises may not equal the total value of exports in 1999 because some figures were excluded due to confidentiality.
1. United States2	19.0	13.7	67.4	87.0
2. European Union	21.8	15.7	62.5	4.6
2.1 United Kingdom	15.7	14.6	69.8	1.3
2.2 Germany	21.8	20.2	57.9	0.7
2.3 France	17.5	11.1	71.4	0.5
3. Japan	32.2	14.9	52.9	2.5
4. China	35.8	14.4	49.8	0.8
5. South Korea	36.7	6.4	56.9	0.6
6. Mexico	15.4	13.4	71.2	0.5
7. Taiwan	36.9	11.3	51.8	0.3
8. Australia	22.0	16.5	61.5	0.3
9. Brazil	24.8	14.5	60.6	0.3
10. Hong Kong	40.8	18.1	41.1	0.3
11. Norway	5.2	5.7	89.1	0.2
12. Indonesia	31.4	14.7	53.9	0.2
13. Iran	10.7	x	x	0.2
14. Algeria	x	4.2	x	0.1
15. Switzerland	17.6	16.5	65.9	0.1
16. Venezuela	27.7	21.9	50.4	0.1
17. Malaysia	27.4	21.7	50.9	0.1
18. India	54.8	14.1	31.1	0.1
19. Cuba	48.8	14.2	37.0	0.1
20. Chile	40.0	18.1	42.0	0.1
All Other Countries	29.9	19.6	50.5	1.7
Total ($ millions)3	64 185	44 354	211 148	320 539

Table 1.2b: Top 20 Export Destinations, Value (Percent) of Exports, by Firm Size (Number of Employees), 2009¹

Country	Small (<100)	Medium (100–499)	Large (500+)	All Firms
	2009
Source: Statistics Canada, Exporter Register, 2008 and 2009. Note 1: Data that are confidential are denoted by X. Note 2: See Table 1.4 for the breakdown of exports by U.S. region. Note 3: The values for small, medium-sized and large enterprises may not equal the total value of exports in 1999 because some figures were excluded due to confidentiality.
1. United States2	22.7	14.6	62.8	74.9
2. European Union	23.4	31.5	45.1	8.7
2.1 United Kingdom	x	x	32.2	3.7
2.2 Germany	21.6	15.0	63.3	1.0
2.3 France	23.9	9.8	66.3	0.8
3. China	36.8	12.3	50.9	3.2
4. Japan	49.5	15.4	35.1	2.5
5. Mexico	17.7	20.9	61.4	1.1
6. South Korea	52.8	10.4	36.9	1.0
7. India	65.1	15.2	19.7	0.6
8. Australia	24.0	23.5	52.5	0.5
9. Brazil	33.5	18.9	47.6	0.5
10. Hong Kong	43.5	13.0	43.5	0.4
11. Switzerland	16.6	6.1	77.3	0.4
12. Saudi Arabia	40.5	25.0	34.5	0.3
13. Taiwan	45.4	12.1	42.5	0.3
14. United Arab Emirates	47.6	25.4	27.0	0.3
15. Indonesia	44.1	45.7	10.2	0.3
16. Singapore	19.7	14.2	66.1	0.3
17. Turkey	60.6	15.5	24.0	0.3
18. Russian Federation	47.3	27.0	25.7	0.2
19. Egypt	63.3	13.8	22.9	0.2
20. Venezuela	20.3	39.1	40.7	0.2
All Other Countries	38.1	33.5	28.4	3.8
Total ($ millions)3	76 770	51 059	172 469	300 298

The majority of countries as well as their rankings in the top 10 export destinations are very similar in the two years observed in Table 1.2. India is an exception as it was not among the top 10 export destinations in 1999, but was ranked seventh in 2009. On the other hand, countries ranked from 11th to 20th differ greatly from one year to the other. For example, Saudi Arabia, Singapore, Turkey, the Russian Federation and a few other countries were not included in the top 20 export destinations in 1999, but accounted for relatively significant shares of the total value of exports in 2009. This may be an indication of market diversification among exporters.

To investigate this matter further, the Herfindahl-Hirschman Index (HHI),^{Footnote 7} which measures market concentration and/or diversification, was used (Table 1.3). In general, the export market appears more diversified in 2009 than in 1999 for all firm sizes. In 1999, small firms had the most diversified export market, whereas medium-sized firms had the most diversified export market in 2009 (although small firms followed very closely). In the same year, the HHI for both small and medium-sized firms was lower than that for large firms, indicating more diversification in the export markets of SMEs.

Table 1.3: The Herfindahl-Hirschman Index

Year	Small	Medium	Large	All Firms
Source: Industry Canada calculations.
1999	0.68	0.74	0.79	0.76
2009	0.46	0.45	0.68	0.57

Of exports destined for the United States in 1999, small firms sent almost 20 percent, while large firms sent about 67 percent. These figures changed slightly in 2009, with small and large firms contributing almost 23 percent and 63 percent, respectively, to exports to the United States. While the figures for these two years are fairly similar, it should be noted that there has been an important decrease in exports in 2009 compared with 2008. In fact, small business exports to the United States fell by 30 percent while those of medium-sized firms fell by 25 percent and large firms fell by 31 percent.

Among the top 20 destinations in 1999, the highest share of the value of exports for small firms within each destination was in India (54.8 percent). Other top destinations for small firms included Cuba (48.8 percent), Hong Kong (40.8 percent) and Chile (40 percent). The main export destinations for small businesses were somewhat different in 2009. Small businesses accounted for 65 percent of the value of exports to India. Other countries among the top 10 where the value of exports contributed by small firms was the highest among the three firm-size categories were South Korea (52.8 percent) and Japan (49.5 percent). Other major export destinations for small firms were Egypt (63.3 percent), Turkey (60.6 percent) and United Arab Emirates (47.6 percent).

2.2. Exports to BRIC (Brazil, Russian Federation, India and China) Countries

A recent report on trade and innovation highlighted the rise of BRIC countries as economic superpowers and the importance of recognizing the dynamism and benefits of developing deeper trading relationships with those countries.^{Footnote 8}

In 1999, exports to BRIC countries accounted for about 1 percent of the total value of exports, but reached 4.5 percent in 2009.^{Footnote 9} The value of small business exports to BRIC countries increased from about $1.3 billion in 1999 to $5.5 billion in 2009, representing approximately 2 percent and 7 percent of the total value of small business exports respectively.^{Footnote 10}

Figure 1.1 illustrates the percentage of the total value of exports to each of the BRIC countries in 1999, 2004, 2007, 2008 and 2009 (2007, 2008 and 2009 for Russia), by firm size. Of all firms exporting to India, small firms contributed the most in each of the years observed. In 1999, small firms sent 55 percent of Canadian exports to India. This number decreased to about 45 percent in 2004 and reached 65 percent in 2009. Similarly, in the case of Russia, small firms contributed most to the total value of exports, representing 48 percent in 2007, 41 percent in 2008 and 47 percent in 2009.

Large Canadian businesses were contributing the most to the value of exports to China and Brazil, although this proportion has been decreasing while the value of exports sent by small firms has been fairly stable. For example, large business exports represented about 60 percent of the total value of exports to China in 2004 and 2007, but 50 percent in 2009. In contrast, small firm exports corresponded to 30 percent of all exports to China in 2007, 39 percent in 2008 and 37 percent in 2009. The percentage of medium-sized firms exporting to BRIC countries has been fairly constant over the years observed.

2.3. Exports to the United States

The contribution by small enterprises to exports to the United States has increased slightly from 19 percent in 1999 to 22.7 percent in 2009 (Table 1.4). The opposite has occurred among large enterprises, with the value of exports decreasing from 67.4 percent of total exports in 1999 to 62.8 percent in 2009, possibly due to the crisis in the automotive sector. Medium-sized enterprises contributed the least to exports to the United States, with approximately 14 percent of the total value of exports to the United States in both 1999 and 2009.

Table 1.4: Value of Exports (Percent) to Each Region of the United States, by Size of Business (Number of Employees), 1999 and 2009

Region1	Small (<100)		Medium (100–499)		Large (500+)
	1999	2009	1999	2009	1999	2009
Source: Statistics Canada, Exporter Register, 2008 and 2009. Note 1: The regions are defined as follows: Eastern Seaboard: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia Industrial Heartland: Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin Midwest: Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, Utah, Wyoming Southeast: Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Puerto Rico, South Carolina, Tennessee, U.S. Virgin Islands West: Alaska, Arizona, California, Hawaii, Nevada, Oregon, Washington
Eastern Seaboard	20.3	23.6	17.6	16.7	62.1	59.7
Industrial Heartland	11.4	17.7	9.5	10.9	79.2	71.5
Midwest	29.8	32.0	16.1	16.8	54.0	51.2
Southeast	26.2	19.9	18.8	19.5	55.0	60.6
West	24.2	23.2	12.2	14.2	63.5	62.6
Total U.S. $ million	19.0 52 900	22.7 51 000	13.7 38 100	14.6 33 000	67.4 187 900	62.8 141 000

Small enterprises contributed most to exports sent to the Midwest, accounting for almost 30 percent of the value of exports to that region in 1999 and 32 percent in 2009. While small enterprises had their lowest contribution in both years to exports sent to the Industrial Heartland, these contributions increased from 11 percent in 1999 to almost 18 percent in 2009.

Large enterprises were the main contributors to exports to all U.S. regions, the largest contribution being sent to the Industrial Heartland (79.2 percent in 1999 and 71.5 percent in 2009).

3. Exports by Province

In each of the three years observed, 1999, 2004 and 2009, 88 percent or more of the value of small business exports came from Quebec, Ontario, Alberta and British Columbia (including the Territories) (Table 1.5). In 1999, Ontario had the largest share of the value of exports among small businesses at 34.5 percent. This share decreased to 26.5 percent in 2004 and increased to 28.2 percent in 2009. The opposite occurred among small business exporters in Alberta, who accounted for almost 26 percent of the value of exports in 1999, 43 percent in 2004 and almost 31 percent in 2009. The changes in these two provinces may be attributable to a large decrease in the value of exports in the manufacturing sector (located mainly in Ontario) and the fact that the value of exports in the oil and mining sectors (concentrated mainly in Alberta) had been increasing until 2008. Exports by small businesses have remained fairy stable in all other provinces.

Table 1.5: Value of Exports (Percent) by Province within Each Firm Size Class (Number of Employees), 1999, 2004 and 2009¹

Province	Small (<100)			Medium (100–499)			Large (500+)
	1999	2004	2009	1999	2004	2009	1999	2004	2009
Source: Statistics Canada, Exporter Register, 2008 and 2009. Note 1: Data that are confidential are denoted by X.
Newfoundland and Labrador	0.4	0.3	0.9	0.2	0.2	0.2	0.2	0.3	0.1
Prince Edward Island	0.3	0.2	0.2	x	x	x	x	x	x
Nova Scotia	2.0	1.8	2.2	1.1	1.1	1.0	0.5	0.4	0.4
New Brunswick	1.0	0.9	0.9	3.0	2.8	2.3	1.4	2.8	3.4
Quebec	16.3	14.2	16.0	20.3	20.1	18.2	17.5	17.6	18.0
Ontario	34.5	26.5	28.2	54.9	51.8	46.7	62.8	54.7	41.8
Manitoba	2.4	1.8	3.7	2.9	1.8	7.1	2.7	2.9	2.6
Saskatchewan	3.2	2.1	4.3	1.8	1.7	2.3	0.9	1.1	2.9
Alberta	25.7	43.1	30.9	6.7	10.8	14.9	6.9	12.8	26.4
British Columbia and Territories	14.1	9.2	12.8	9.1	9.5	7.3	7.2	7.4	4.3
Canada ($ millions)	64 200	89 600	76 800	44 300	51 000	51 000	212 000	226 900	172 500

In the case of medium-sized firms, there have not been significant changes in the shares of the values of exports in each province. Similar conclusions can be drawn for large firms in most provinces, with the exception of Ontario and Alberta. For example, while Ontario has accounted for the largest share of exports among large firms, this share has decreased from 62.8 percent in 1999 to 41.8 percent in 2009. On the other hand, the share of exports among large enterprises in Alberta increased from almost 7 percent in 1999 to 26 percent in 2009.

As highlighted at the beginning of this report, the overall value of exports has decreased considerably in 2009 as one of the consequences of the global recession. The value of small business exports decreased by about $21 billion from 2008 to 2009 (not shown in table). Small businesses in Ontario accounted for 16 percent of that loss while those in Alberta accounted for about 60 percent. This loss could be explained by an important decrease in exports in finance and insurance industries, many of which may be facilitating trade of oil and gas, Alberta's main exports. While the decrease in the value of exports was important, the number of small firms exporting from each of these provinces has not changed significantly.

4. Exports by Type of Commodity Exported by Small Firms

In 2009, mineral products represented the largest proportion (almost 30 percent) of the value of small business exports, but enterprises exporting those goods accounted for only 1.4 percent of the total number of small business exporters (Table 1.6). In the same year, the commodities exported by the largest proportion of small firms (21.7 percent) were machinery and mechanical appliances, as well as electrical equipment. These exports represented 13.4 percent of the value of small business exports. When ranked by value of exports, other commodities that were exported by small businesses in 2009 included vegetable products (8.4 percent), products of chemical or allied industries (8.3 percent) and base metals (6.7 percent). Vehicles, aircraft, vessels and associated transport equipment were ranked eighth in 1999 and 2009 (accounting for 5.6 and 3.9 percent of small business exports respectively).

Table 1.6: Top 10 Commodities Exported by Small Firms (Less than 100 Employees), by Value of Exports (Percent), 1999 and 2009

Commodity Exported	1999		Commodity Exported	2009
	Value (%)	Number of Firms (%)		Value (%)	Number of Firms (%)
Source: Statistics Canada, Exporter Register, 2008 and 2009. Note: More than one firm can export the same commodity.
1. Mineral Products	21.9	1.1	1. Mineral Products	29.9	1.4
2. Machinery and mechanical appliances; electrical equipment	14.5	19.9	2. Machinery and mechanical appliances; electrical equipment	13.4	21.7
3. Wood and articles of wood; wood charcoal; cork and articles of cork	11.9	5.2	3. Vegetable products	8.4	5.4
4. Pulp of wood or of other fibrous cellulosic material	6.0	4.9	4. Products of chemical or allied industries	8.3	3.7
5. Live animals; animal products	6.0	4.1	5. Base metals and articles of base metal	6.7	10.7
6. Base metals and articles of base metal	5.9	9.1	6. Live animals; animal products	5.2	2.9
7. Products of the chemical or allied industries	5.7	3.6	7. Pulp of wood or of other fibrous cellulosic material	4.4	5.3
8. Vehicles, aircraft, vessels and associated transport equipment	5.6	6.0	8. Vehicles, aircraft, vessels and associated transport equipment	3.9	5.4
9. Miscellaneous manufactured articles	4.6	8.6	9. Plastics and articles thereof; rubber and articles thereof	3.6	11.6
10. Plastics and articles thereof; rubber and articles thereof	4.2	10.3	10. Prepared foodstuffs; beverages, spirits and vinegar; tobacco	3.4	2.6
Other products	13.7	27.0	Other products	12.8	29.3
Total (%)	100.0	100.0	Total (%)	100.0	100.0

While the rankings by value of small business exports were the same for the top two commodities in the two years observed, the value of mineral products exporte d changed significantly, increasing from 21.9 percent of the total value of exports by small businesses in 1999 to 29.9 percent in 2009.

5. Small Business Exporters in Selected Industries, by Destination

Table 1.7 presents the percentage of small enterprises in selected industries (those with the highest number of small businesses) that exported to the United States, the European Union, Japan, Mexico, South America and other countries in 1999 and 2009. For example, 59.7 percent of small business exporters in the manufacturing sector in 2009 exported to the United States. It should be noted that one firm can export to more than one destination and that not all industries are shown in this table. Therefore, the percentages for each year may not add up to 100 percent.

Table 1.7: Small Business Exporters (Percent) by Selected Industries and Destination, 1999 and 2009¹

Industry	United States		European Union		Japan		Mexico		South America		Other
	1999	2009	1999	2009	1999	2009	1999	2009	1999	2009	1999	2009
Source: Statistics Canada, Exporter Register, 2008 and 2009. Note 1: Data that are confidential are denoted by X.
Construction	76.5	61.6	6.5	11.4	3.1	x	0.2	0.8	1.2	3.2	12.5	23.0
Manufacturing	78.8	59.7	8.4	13.3	2.2	3.0	0.2	2.4	1.2	4.3	8.0	17.4
Wholesale Trade	66.4	46.6	10.3	14.1	4.4	3.7	0.7	2.2	2.2	4.8	16.0	28.5
Retail Trade	78.5	49.7	7.9	16.9	1.9	2.0	0.4	1.1	1.0	1.9	10.3	28.3
Professional Services	77.3	47.8	8.0	15.6	1.8	3.7	0.2	2.5	1.3	4.5	11.2	25.9
Accommodation and Food	72.3	54.0	6.4	16.9	2.8	2.3	x	x	x	2.1	18.4	24.7

The percentage of small enterprises exporting to the United States from each of the selected industries decreased in 2009 compared with 1999. In 2009, the greatest percentages of small business exporters to the United States were in the construction and manufacturing sectors (61.6 percent and 59.7 percent respectively). In comparison, small firms in those industries exported more to the European Union in 2009 than in 1999. In 2009, the greatest percentages of small business exporters to the European Union were in the accommodation and food, and retail trade sectors (almost 17 percent of firms in each of the two industries).

While the proportion of small firms exporting to Mexico from each of the industries was less than 0.8 percent in 1999, the proportions increased in 2009 in each of the industries from 0.8 percent of firms in construction to 2.5 percent of firms in professional services.

In 1999, Japan was the third-ranked export destination for small businesses in the selected industries, after the United States and the European Union. In 2009, small businesses in those industries were exporting more to South America than to Japan.

6. Imports

In 2008, the total value of imports to Canada was approximately $380 billion. Eighty-seven percent of importers were small businesses and were responsible for $88 billion (23 percent) of the total value of imports. Medium-sized businesses accounted for 9 percent of all importers and were responsible for $68 billion (18 percent) of the total value of imports. Large businesses represented about 4 percent of all importers and accounted for $223 billion (59 percent) of the total value of imports in 2008.

Figure 1.2 shows the top five countries from which imports were obtained for small Canadian enterprises in 2008. Half of the value of small business imports (about $44 billion) came from the United States. The second most important source of imports was China, accounting for 17 percent of the total value of imports. Japan and Germany accounted for 4 percent of the value of imports each, while Italy was fifth at 2.3 percent. Imports from countries such as Mexico, Taiwan, France, the United Kingdom, South Korea, Thailand and India represented between 1 and 2 percent (not shown in figure) of the total value of imports while other countries accounted for less than 1 percent.

In general, these percentages have not changed significantly compared with 2002, with the exception of China. The value of imports from China has increased from about $8 billion in 2002 to $15 billion in 2008, representing 8 percent and 17 percent of the total value of imports respectively.

Footnotes

Footnote 5

The total value of exports in 2009 was about $300 billion. However, once the values are distributed by firm size and industry, about $24 billion of exports are classified as confidential. Therefore, the percentages presented in the text and Table 1.1 are calculated using $276 billion as the total value of exports.

Return to footnote 5 referrer

Footnote 6

Indeterminate firms are included in the count of small businesses. See "Data Sources and Methodology" for more details about the differences in figures reported in this and the following section.

Return to footnote 6 referrer

Footnote 7

The Herfindahl-Hirschman Index is a commonly accepted measure of market concentration. Markets with a high HHI are considered to be highly concentrated. An index of one indicates a fully concentrated market. In this case, the HHI was calculated by squaring each share of the total value of exports, for each firm size, and summing the resulting numbers.

Return to footnote 7 referrer

Footnote 8

Institute for Competitiveness and Prosperity, Trade, Innovation and Prosperity, Working Paper 14, September 2010.

Return to footnote 8 referrer

Footnote 9

The exact value of exports to Russia in 1999 was not available, but given that a maximum possible value was approximated, this remains a fair estimate.

Return to footnote 9 referrer

Footnote 10

Idem.

Return to footnote 10 referrer