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Firm Innovation, Financial Constraints and Exports - Evidence From Indian SMEs

Author

Listed:
  • Ketan Reddy

    (Department of Economics and Public Policy, Indian Institute of Management Raipur, Raipur, India)

Abstract

Using rich firm-level data on 4517 small and medium-sized Indian manufacturing firms, we explore the implications of financial constraints on firm innovation and further investigate the interplay between financial constraints and export participation on firm innovation. Our findings highlight a negative association between firm innovation and financial constraints and a positive association between firm innovation and export. Moreover, we find that firms participating in international trade are well-positioned to offset the challenges of financial constraints on firm innovation.

Suggested Citation

  • Ketan Reddy, 2024. "Firm Innovation, Financial Constraints and Exports - Evidence From Indian SMEs," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 5(1), pages 1-5.
    • Handle: RePEc:ayb:jrnael:103
    DOI: 2024/06/29
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    References listed on IDEAS

    as
    1. Philippe Aghion & Philippe Askenazy & Nicolas Berman & Gilbert Cette & Laurent Eymard, 2012. "Credit Constraints And The Cyclicality Of R&D Investment: Evidence From France," Journal of the European Economic Association, European Economic Association, vol. 10(5), pages 1001-1024, October.
    2. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    3. Aghion, P. & Askenazy, P. & Berman, N. & Cette, G. & Eymard, L., 2008. "Credit Constraints and the Cyclicality of R&D Investment: Evidence from France," Working papers 198, Banque de France.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Firm Innovation; Financial constraints; Export; SME;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • B17 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - International Trade and Finance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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