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Exports and Financing Constraints Evidence from Turkey

Author

Listed:
  • Gezici Armağan

    (Keene State College, Keene, NH, USA)

  • Orhangazi Özgür

    (Kadir Has University, Istanbul, Turkey)

  • Yalçın Cihan

    (Central Bank of the Republic of Turkey, Ankara, Turkey)

Abstract

This paper examines the link between financing constraints and firm exporting behavior through an in-depth study of the Turkish manufacturing firms between 1996 and 2013. Utilizing a rich firm-level data set, we test for both ex-ante and ex-post links between exports and financing constraints to tackle potential selection biases and endogeneity problems. We find a positive and statistically significant export premium for financing constraints in general. In further testing we show that there is no significant evidence of pre-entry premium, while we find that financing constraints faced by exporting firms are eased once they start exporting, confirming an improvement in the financial conditions of export starters compared to non-exporters.

Suggested Citation

  • Gezici Armağan & Orhangazi Özgür & Yalçın Cihan, 2018. "Exports and Financing Constraints Evidence from Turkey," Review of Middle East Economics and Finance, De Gruyter, vol. 14(1), pages 1-11, April.
    • Handle: RePEc:bpj:rmeecf:v:14:y:2018:i:1:p:11:n:3
    DOI: 10.1515/rmeef-2017-0024
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    References listed on IDEAS

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    Cited by:

    1. Joachim Wagner, 2019. "Access to Finance and Exports – Comparable Evidence for Small and Medium Enterprises from Industry and Services in 25 European Countries," Open Economies Review, Springer, vol. 30(4), pages 739-757, September.

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    More about this item

    Keywords

    financing constraint; international trade; exports; Turkey; propensity score matching;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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