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Bank support and export: evidence from small Italian firms

Author

Listed:
  • Francesca Bartoli
  • Giovanni Ferri
  • Pierluigi Murro
  • Zeno Rotondi

Abstract

The ability of a country and its businesses to grow is tightly related to the possibility of exporting and penetrating into foreign markets. The aim of this article is to study whether bank support can help small businesses (SBs) exporting at the extensive as well as the intensive margin. We address this issue by using a large database on small Italian firms. We provide an empirical analysis of the role of bank support in affecting the firms’ export decisions. Our results show that among the exporting SBs those using bank services to support their exports have a higher probability of being better placed in both the intensive and the extensive margin. Moreover, these positive impacts on export are statistically significant only when the main bank of the firm is an internationalized bank. These results have relevant policy implications as well as consequences for the business models of internationalized banks. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Francesca Bartoli & Giovanni Ferri & Pierluigi Murro & Zeno Rotondi, 2014. "Bank support and export: evidence from small Italian firms," Small Business Economics, Springer, vol. 42(2), pages 245-264, February.
    • Handle: RePEc:kap:sbusec:v:42:y:2014:i:2:p:245-264
    DOI: 10.1007/s11187-013-9486-8
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    More about this item

    Keywords

    Margins of export; Export promotion; Bank–firm relationships; International lending; F10; F14; F34; G21; L26;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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