Gross domestic product and country risk in export market selection

Enterprises interested in increasing production, sales, and income, should consider exporting. Increasing exports will likely increase the exporting country gross domestic product (GDP). World exports of goods and services as a percentage of world GDP increased from approximately 12.1 percent in 1960 to 28 percent in 2010 (World Bank, 2012). Although Puerto Rico has extensive experience trading with the USA and its territories, its experience in other markets is more limited. The research goal is to help enterprises and export promotion agencies determine which countries they should target for their export activities. In this research, we tested the relationship between Puerto Rico's exports (PRX) and importing country GDP (IGDP) and country risk (ICR). First, we performed two single regression models of PRX as the dependent variable and IGDP and ICR as independent variables, one for all countries

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