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Financial Development, Exporting and Firm Heterogeneity in Chile

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Author Info

  • Roberto Alvarez

    (University of Chile and Central Bank of Chile)

  • Ricardo Lopez

    ()
    (International Business School, Brandeis University)

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.

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File URL: http://www.brandeis.edu/departments/economics/RePEc/brd/doc/Brandeis_WP51.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by Brandeis University, Department of Economics and International Businesss School in its series Working Papers with number 51.

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Length: 38 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:brd:wpaper:51

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Postal: MS032, P.O. Box 9110, Waltham, MA 02454-9110
Web page: http://www.brandeis.edu/departments/economics/
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Related research

Keywords: Exporting; Financial Development; Credit Constraints; Plant Level Data; Chile;

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References

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Citations

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Cited by:
  1. Joachim Wagner, 2013. "Micro-econometric studies of international firm activities and firm performance: introduction by guest editor," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 149(1), pages 1-3, March.
  2. Wagner, Joachim, 2013. "Credit constraints and exports: A survey of empirical studies using firm level data," Working Paper Series in Economics and Institutions of Innovation 334, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  3. Molina, Danielken & Roa, Monica, 2014. "The Effect of Credit on the Export Performance of Colombian Exporters," MPRA Paper 56137, University Library of Munich, Germany.

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