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Financial development, exporting and firm heterogeneity in Chile

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  • Roberto Alvarez
  • Ricardo López

    ()

Abstract

Using plant-level data from the manufacturing sector of Chile for the period 1990–2000, this paper examines the effect of financial development on the probability of exporting at the plant level, with a special focus on the heterogeneous responses of plants with different characteristics. The main results are that an improvement in financial development increases the probability of exporting of more productive plants and those with foreign ownership operating in manufacturing sectors that are more dependent on external finance. Our estimates also show that financial development does not appear to improve the probability of exporting for relatively smaller and younger plants. This result suggests that, at least for the case of exporting in Chile, smaller and younger plants are not necessarily more likely to benefit than larger and older plants from improvements in access to credit. Copyright Kiel Institute 2013

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 149 (2013)
Issue (Month): 1 (March)
Pages: 183-207

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Handle: RePEc:spr:weltar:v:149:y:2013:i:1:p:183-207

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Related research

Keywords: Exporting; Financial development; Credit constraints; Plant-level data; Chile; F14; O16; O54;

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References

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Citations

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Cited by:
  1. Danielken Molina & Mónica Roa, 2014. "The Effect of Credit on the Export Performance of Colombian Exporters," IDB Publications 85356, Inter-American Development Bank.
  2. Joachim Wagner, 2013. "Credit constraints and exports: A survey of empirical studies using firm level data," Working Paper Series in Economics 287, University of Lüneburg, Institute of Economics.
  3. Buch, Claudia M. & Kesternich, Iris & Lipponer, Alexander & Schnitzer, Monika, 2014. "Financial constraints and foreign direct investment: firm-level evidence," Munich Reprints in Economics, University of Munich, Department of Economics 19977, University of Munich, Department of Economics.
  4. Joachim Wagner, 2013. "Micro-econometric studies of international firm activities and firm performance: introduction by guest editor," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 149(1), pages 1-3, March.

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