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The relationship between slack resources and firms’ exporting behavior

Author

Listed:
  • Ine Paeleman

    (Ghent University)

  • Catherine Fuss

    (National Bank of Belgium, Research Department
    Université Libre de Bruxelles)

  • Tom Vanacker

    (Ghent University
    Vlerick Business school)

Abstract

We use a unique longitudinal dataset that tracks the exporting behavior of Belgian manufacturing firms between 1997 and 2009. We ask how slack resources, including financial and human resource slack, influence firms’ exporting behavior. Our findings suggest that both types of slack resources have an inverted U-shaped relationship with the decision to export. This implies that higher levels of slack resources positively influence the likelihood of firms exporting, but too much slack negatively influences this likelihood. After controlling for the decision to export, we find no significant relationship between slack resources and export intensity. Nevertheless, we do find an inverted U-shaped relationship between slack resources and export diversity. Overall, this study provides new insight into how different types of slack resources influence different aspects of firms’ exporting behavior.

Suggested Citation

  • Ine Paeleman & Catherine Fuss & Tom Vanacker, 2013. "The relationship between slack resources and firms’ exporting behavior," Working Paper Research 248, National Bank of Belgium.
    • Handle: RePEc:nbb:reswpp:201312-248
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    More about this item

    Keywords

    financial resources; human resources; slack and export;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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