Financial Constraints and Firm Export Behaviour

Bellone, Flora; Musso, Patrick; Nesta, Lionel; Schiavo, Stefano

doi:10.1111/j.1467-9701.2010.01259.x

Cited by 281 publications

(260 citation statements)

References 57 publications

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“…Minetti and Zhu (2011) use data on Italian firms and find that credit rationing affects both the extensive and the intensive margins of exporting. 33 This is in contrast to Bellone et al (2010), who, using data on French firms, find that firms enjoying better financial health are more likely to become exporters.…”

Section: Aggregate Financial Factorscontrasting

confidence: 44%

Firms in international trade

Díez¹,

Mora²,

Spearot³

2018

Handbook of International Trade and Transportation

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Firms play a critical role in the global economy. In this paper, we survey the behavior of firms in the international economy, both in theory and in the data. We first summarize the key empirical facts that motivate the study of firms in trade. Then, we detail recent theoretical developments on the micro-foundations of firm behavior in an international context, focusing on how firms select into exporting, and how firms respond to international shocks. Finally, we turn to a "real world," empirically focused view of exporting, beginning with the growth dynamics of firms expanding to global markets, and then addressing the critical financing decisions firms make when engaging in international commerce. We conclude with directions for future research. Terms of use: Documents in EconStor may JEL Classifications: F10, F12, F14

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Section: Aggregate Financial Factorscontrasting

confidence: 44%

Firms in international trade

Díez¹,

Mora²,

Spearot³

2018

Handbook of International Trade and Transportation

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“…There is a continuum of varieties  ∈ Ω Consumers preferences for the varieties in the industry 2 Other papers that do not focus on financing constraints but are nonetheless related are Campa and Shaver (2001) and Castellani (2002). Campa and Shaver (2001) show that exporting firms may use the exposure to different countries to diversify the risk of business cycle fluctuations.…”

Section: The Modelmentioning

confidence: 99%

“…Beside using a larger dataset, our empirical analysis differs from Minetti and Chun Zhu (2010) in that we test the specific predictions of our dynamic model regarding the direct and indirect implications of financing frictions for the distribution of wealth and for the productivity-export relation. 2 …”

Section: Literaturementioning

confidence: 99%

Financing constraints, firm dynamics, export decisions, and aggregate productivity

Caggese

Cuñat

2013

Review of Economic Dynamics

110

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We develop a dynamic industry model where financing frictions affect the entry decisions of new firms in the home market, as well as the riskiness of operating firms. These two factors in turn determine a joint endogenous distribution of firms across productivity, volatility and financial wealth. We show that this endogenous distribution is crucial to understand export and productivity dynamics after a trade liberalization. In particular, the calibrated model predicts that financing frictions have an ambiguous effect on the number of firms starting to export. They reduce the ability of firms to finance the fixed costs necessary to start exporting, but they also change the distribution of domestic firms so that most of them find more profitable to access foreign markets. More importantly, the model predicts that financing constraints, even when they have a negligible net effect on the number of exporting firms, reduce the aggregate productivity gains induced by trade liberalization by 30% to 50%, because they distort the selection into export of the most productive firms. In the second part of the paper we verify the main predictions of the model with a rich dataset of Italian manufacturing firms for the period 1995-2003.

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“…Although high scarcity of external financial resources is characteristic not only for Slovenia, but actually for Eastern Europe in general (Marer, 2010), Slovenia has been hit even worse by the liquidity aspect of the current crisis due to high instability of the Slovenian banking system. We measure Slovenian firms' financial health according to the methodology first proposed by Musso and Schiavo (2008) and extended by Bellone et al (2010). We construct a synthetic index from seven different variables that carry important information relative to the existence of financial constraints to the firm.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Financial Constraints: The Effect of Financial Crisis and Heterogeneity Across Industries

Ponikvar

Kejžar

Mörec

2013

Economic Research-Ekonomska Istraživanja

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Based on the population of Slovenian firms we analyse the impact of the 2008 financial crisis on the firms' financial constraints. In line with the theoretical predictions firm size, ownership, productivity, and export orientation all impact firm's financial situation. With the full onset of the crisis in 2009, financial health of the foreign firms worsened more compared to domestic firms, while the availability of financial resources deteriorated less for more productive firms and for exporters. Even though firm's size has a significant impact on firm's financial constraint, crisis didn't have an additional significant negative effect on firms' financial distress for all but small firms. ARTICLE INFO

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Financial Constraints and Firm Export Behaviour

Cited by 281 publications

References 57 publications

Firms in international trade

Firms in international trade

Financing constraints, firm dynamics, export decisions, and aggregate productivity

Determinants of Financial Constraints: The Effect of Financial Crisis and Heterogeneity Across Industries

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