ABSTRACT
This chapter examines the relationship between home demand and exports and tries to discover what other variables influenced United Kingdom exports. The project was restricted to firms in a small number of industries rather than a random selection of firms over a wide field. The authors started the project with the aim of gathering data on enough relevant variables from each firm on a time-series basis to set up and test an econometric model of the determination of firms' exports with particular reference to the pressure of demand effect. The broad aim was to obtain data which would allow a study of the effect on firms' export performance of plausible explanatory variables: overseas demand and variables reflecting the various aspects of competitivity, particularly in relation to capacity utilization and prices. The statistical data and the scope of the analysis turned out to be considerably restricted by the nature of the figures which were readily obtainable from most firms' records.
