Financial Constraints and Exports: Evidence from Chinese Firms
AbstractThis article assesses the role of credit constraints for exports at the firm level. Theoretical models by Chaney, Manova, and others suggest that credit constraints are detrimental for exports. We examine this hypothesis empirically at the firm level by using data on Chinese enterprises compiled by the National Bureau of Statistics of China. We approximate credit constraints by financial variables such as a firm's debt ratio or the liquid-to-total-capital ratio. We then consider the impact of these financial fundamentals on the extensive and the intensive margins of firm-level exports. In particular, we focus on the impact of credit constraints on a firm's propensity to export at all (which we model by means of a logit model) and on a firm's export--sales ratio (which we model by a fractional response model based on Papke and Wooldridge (1996 Journal of Applied Econometrics 11, 619--32). The empirical results confirm the negative relationship between exports and credit constraints suggested by previous theoretical work. Credit constrained firms are less likely to be exporters and have lower export quotas. The results are robust when using alternative explanatory variables and including further explanatory variables. (JEL Codes: F14; G32) Copyright The Author 2013. Published by Oxford University Press on behalf of Ifo Institute, Munich. All rights reserved. For permissions, please email: firstname.lastname@example.org, Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by CESifo in its journal CESifo Economic Studies.
Volume (Year): 59 (2013)
Issue (Month): 4 (December)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Phone: +49 (89) 9224-0
Fax: 01865 267 985
Web page: http://cesifo.oxfordjournals.org/
More information through EDIRC
Find related papers by 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
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Wagner, Joachim, 2012.
"Credit constraints and exports: Evidence for German manufacturing enterprises,"
Working Paper Series in Economics and Institutions of Innovation
286, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Joachim Wagner, 2014. "Credit constraints and exports: evidence for German manufacturing enterprises," Applied Economics, Taylor & Francis Journals, vol. 46(3), pages 294-302, January.
- Joachim Wagner, 2012. "Credit constraints and exports: Evidence for German manufacturing enterprises," Working Paper Series in Economics 251, University of Lüneburg, Institute of Economics.
- Tibor Besedeš & Byung–Cheol Kim & Volodymyr Lugovskyy, 2011. "Export Growth and Credit Constraints," CeFiG Working Papers 16, Center for Firms in the Global Economy, revised 16 Oct 2011.
- Silvio Contessi & Francesca de Nicola, 2012. "What do we know about the relationship between access to finance and international trade?," Working Papers 2012-054, Federal Reserve Bank of St. Louis.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.