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Financial health, exports and firm survival: A comparison of British and French firms

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  • Holger Görg
  • Marina-Eliza Spaliara

Abstract

We examine the differential effects of financial status and exporting activity on the likelihood of survival for firms in the UK and France - two countries with different financial systems. We aim to answer two main questions: What is the direct impact of financial characteristics and different facets of exporting activity on the likelihood of survival? Do the sensitivities of survival incidence to financial variables vary with the exporting status of firms? We find strong evidence that continuous exporters face a higher probability of survival compared to starters, continuous non-exporters and firms exiting the exporting market. Further, important sensitivities of survival prospects to financial indicators are observed for the UK firms which might be explained by the "market based" economy. Finally, a within and across countries comparison reveals that the survival of exporting groups varies substantially depending on firms' financial status, the financial system and the prolonged participation in the export market

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1568.

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Length: 37 pages
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:kie:kieliw:1568

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Keywords: exports; financial health; firm survival;

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Citations

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Cited by:
  1. Joachim Wagner & John P. Weche Geluebcke, 2011. "Foreign Ownership and Firm Survival: First evidence for enterprises in Germany," Working Paper Series in Economics 221, University of Lüneburg, Institute of Economics.
  2. Joachim Wagner, 2012. "International trade and firm performance: a survey of empirical studies since 2006," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 148(2), pages 235-267, June.
  3. Gabriel J. Felbermayr & Gilbert Spiegel, 2012. "A Simple Theory of Trade, Finance, and Firm Dynamics," CESifo Working Paper Series 3873, CESifo Group Munich.
  4. FERRAGINA, Anna Maria, 2013. "The Impact of FDI on Firm Survival and Employment: A Comparative Analysis for Turkey and Italy," CELPE Discussion Papers 127, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  5. Filipe SIlva & Carlos Carreira, 2011. "Financial constraints and exports: An analysis of Portuguese firms during the European monetary integration," GEMF Working Papers 2011-13, GEMF - Faculdade de Economia, Universidade de Coimbra.
  6. Wagner, Joachim, 2011. "Exports, Imports and Firm Survival: First Evidence for Manufacturing Enterprises in Germany," IZA Discussion Papers 5924, Institute for the Study of Labor (IZA).

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