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Bank Internationalization and Firm Exports: Evidence from Matched Firm–Bank Data

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  • Raffaello Bronzini
  • Alessio D'Ignazio

Abstract

In this paper we investigate whether new exporter firms have a higher probability of starting to export to the countries where their financing banks have already established their branches. The underlying mechanism we hypothesize is based on the transmission of foreign market knowledge from banks to firms, so as to cut down information barriers to international trade. In those countries where such information is arguably more precious to the firm, we found a significant positive relationship between a firm’s probability of beginning to export to one market, and the presence in the same market of a branch of the firm’s financing bank. Coherently with the mechanism hypothesized, we find a stronger effect for closer firm-bank relationships, and when banks have established their branches abroad over a longer time period.
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  • Raffaello Bronzini & Alessio D'Ignazio, 2017. "Bank Internationalization and Firm Exports: Evidence from Matched Firm–Bank Data," Review of International Economics, Wiley Blackwell, vol. 25(3), pages 476-499, August.
  • Handle: RePEc:bla:reviec:v:25:y:2017:i:3:p:476-499
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    File URL: http://hdl.handle.net/10.1111/roie.12264
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    4. Yiwei Fang & Iftekhar Hasan & Woon Sau Leung & Qingwei Wang, 2019. "Foreign ownership, bank information environments, and the international mobility of corporate governance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1566-1593, December.
    5. Maria Luisa Mancusi & Andrea Vezzulli & Serena Frazzoni & Zeno Rotondi & Maurizio Sobrero, 2018. "Export and Innovation in Small and Medium Enterprises: The Role of Concentrated Bank Borrowing," Economica, London School of Economics and Political Science, vol. 85(337), pages 177-204, January.
    6. Ana P. Fernandes & Jing-Lin Duanmu, 2023. "Foreign Banks and Firms' Export Dynamics: Evidence from China's Banking Reform," Discussion Papers 2304, University of Exeter, Department of Economics.
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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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