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Access to finance and exporting behavior in transition countries

Author

Listed:
  • Bernard, Alex
  • Stabilito, Augusto
  • Donghoon Yoo, Julian

Abstract

We analyze the link between firms' access to finance and their decisions to enter and exit the export market. We employ the Business Environment and Enterprise Performance Survey (BEEPS) conducted in 2005 and 2008-2009 to 28 countries in Eastern Europe and Central Asia. We find that more productive, foreign owned and older firms are more likely to start exporting, while larger and more productive firms are less likely to exit the export market. With respect to ex-ante firm characteristics, our results confirm that larger and more productive, as well as foreign-owned, firms self-select into exporting. By contrast, there is no relationship between the decision of firms to enter or exit export markets and their access to finance. This may suggest that internal finance plays a greater role in Eastern European and CIS countries than in developed countries.

Suggested Citation

  • Bernard, Alex & Stabilito, Augusto & Donghoon Yoo, Julian, 2010. "Access to finance and exporting behavior in transition countries," Kiel Advanced Studies Working Papers 456, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwasw:456
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    References listed on IDEAS

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    Cited by:

    1. Nakhoda, Aadil, 2012. "The influence of financial leverage of firms on their international trading activities," MPRA Paper 35765, University Library of Munich, Germany.
    2. Phan, Trang Hoai & Stachuletz, Rainer & Nguyen, Hai Thi Hong, 2022. "Export Decision and Credit Constraints under Institution Obstacles," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 132783, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Trang Hoai Phan & Rainer Stachuletz & Hai Thi Hong Nguyen, 2022. "Export Decision and Credit Constraints under Institution Obstacles," Sustainability, MDPI, vol. 14(9), pages 1-27, May.

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    More about this item

    Keywords

    Exports; Firm heterogeneity; Access to finance;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing

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