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Financial Factors and Manufacturing Exports:Theory and Firm-level Evidence From Egypt

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  • Alexandru MINEA

    (Centre d'Etudes et de Recherches sur le Développement International)

  • Youssouf KIENDREBEOGO

Abstract

This paper focuses on the effects of financial factors on manufacturing firms' export participation. Using a simple dynamic discrete choice model, we first present the intuition according to which financial constraints reduce the probability of exporting. Then, based on a panel of Egyptian manufacturing firms over the 2003-2008 period, we estimate the impact of financial constraints on export market participation. Our main results show that, unlike financial liquidity, financial constraints reduce the export participation of Egyptian firms. In addition, financial constraints equally have a negative impact on alternative measures of the export activity, namely the export intensity and the time firm take before starting to export

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Bibliographic Info

Paper provided by CERDI in its series Working Papers with number 201221.

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Length: 32
Date of creation: 2012
Date of revision:
Handle: RePEc:cdi:wpaper:1366

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Keywords: Financial Constraints; Exports; Firm-Level Evidence; Sunk Costs;

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Cited by:
  1. Wagner, Joachim, 2012. "Credit constraints and exports: Evidence for German manufacturing enterprises," Working Paper Series in Economics and Institutions of Innovation, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies 286, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  2. Joachim Wagner, 2013. "Credit constraints and exports: A survey of empirical studies using firm level data," Working Paper Series in Economics, University of Lüneburg, Institute of Economics 287, University of Lüneburg, Institute of Economics.

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