Advanced Search
MyIDEAS: Login to save this paper or follow this series

World Market Access of Emerging-Market Firms: the Role of Foreign Ownership and Access to External Finance

Contents:

Author Info

  • Horst Raff
  • Natalia Trofimenko

Abstract

This paper uses micro-data from the World Bank Investment Climate Surveys 2002-2006 to investigate how foreign ownership and access to external finance affect the likelihood of manufacturers in emerging markets to export and/or import. Applying propensity score matching to control for differences across firms in terms of labor productivity, size, etc., we find that foreign ownership and access to external finance are statistically significant determinants of the likelihood that a firm will export or import. Foreign ownership has a large positive impact on the likelihood to engage in direct trade but a negative effect on the likelihood to trade through intermediaries; the effects vary across upper and lower middle income countries. Access to external finance has a modest but positive effect on the likelihood to engage in any of the modes of connecting with foreign customers or suppliers

Download Info

If 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.
File URL: https://www.ifw-members.ifw-kiel.de/publications/world-market-access-of-emerging-market-firms-the-role-of-foreign-ownership-and-access-to-external-finance/KWP%201848%20June%202013.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1848.

as in new window
Length: 47 pages
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:kie:kieliw:1848

Contact details of provider:
Postal: Kiellinie 66, D-24105 Kiel
Phone: +49 431 8814-1
Fax: +49 431 85853
Email:
Web page: http://www.ifw-kiel.de
More information through EDIRC

Related research

Keywords: international trade; foreign ownership; financing; developing countries; intermediation; multinational enterprise;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Lechner, Michael & Wunsch, Conny, 2011. "Sensitivity of Matching-Based Program Evaluations to the Availability of Control Variables," IZA Discussion Papers 5553, Institute for the Study of Labor (IZA).
  2. Beck, T.H.L., 2002. "Financial development and international trade: Is there a Link?," Open Access publications from Tilburg University, Tilburg University urn:nbn:nl:ui:12-3125515, Tilburg University.
  3. Hiroyuki Kasahara & Beverly Lapham, 2008. "Productivity and the Decision to Import and Export: Theory and Evidence," CESifo Working Paper Series 2240, CESifo Group Munich.
  4. Dimitra Petropoulou, 2008. "Information Costs, Networks and Intermediation in International Trade," CEP Discussion Papers, Centre for Economic Performance, LSE dp0848, Centre for Economic Performance, LSE.
  5. Sourafel Girma & Yundan Gong & Holger Gorg, . "Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises," Discussion Papers 07/44, University of Nottingham, GEP.
  6. Peter Debaere & Holger Görg & Horst Raff, 2010. "Greasing the Wheels of International Commerce: How Services Facilitate Firms' International Sourcing," Kiel Working Papers, Kiel Institute for the World Economy 1591, Kiel Institute for the World Economy.
  7. Andrew B. Bernard & Marco Grazzi & Chiara Tomasi, 2011. "Intermediaries in International Trade: Direct versus indirect modes of export," NBER Working Papers 17711, National Bureau of Economic Research, Inc.
  8. Deborah L. Swenson, 2007. "Multinationals and the Creation of Chinese Trade Linkages," NBER Working Papers 13271, National Bureau of Economic Research, Inc.
  9. Brian, McCaig, 2011. "Exporting out of poverty: Provincial poverty in Vietnam and U.S. market access," Journal of International Economics, Elsevier, Elsevier, vol. 85(1), pages 102-113, September.
  10. Kletzer, Kenneth & Bardhan, Pranab, 1986. "Credit Markets and Patterns of International Trade," Department of Economics, Working Paper Series, Department of Economics, Institute for Business and Economic Research, UC Berkeley qt1g36f3sd, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  11. Matthieu Crozet & Guy Lalanne & Sandra Poncet, 2010. "Wholesalers in International Trade," Working Papers, CEPII research center 2010-31, CEPII research center.
  12. Emek Basker & Pham Hoang Van, 2008. "Imports "R" Us: Retail Chains as Platforms for Developing-Country Imports," Working Papers, Department of Economics, University of Missouri 0804, Department of Economics, University of Missouri, revised 12 Aug 2008.
  13. Mary Amiti & David E. Weinstein, 2011. "Exports and Financial Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1841-1877.
  14. Kalina Manova & Zhiwei Zhang, 2009. "China's Exporters and Importers: Firms, Products and Trade Partners," NBER Working Papers 15249, National Bureau of Economic Research, Inc.
  15. Horst Raff & Joachim Wagner, 2013. "Foreign Ownership and the Extensive Margins of Exports: Evidence for Manufacturing Enterprises in Germany," Working Paper Series in Economics, University of Lüneburg, Institute of Economics 277, University of Lüneburg, Institute of Economics.
  16. Petia Topalova, 2010. "Factor Immobility and Regional Impacts of Trade Liberalization: Evidence on Poverty from India," American Economic Journal: Applied Economics, American Economic Association, American Economic Association, vol. 2(4), pages 1-41, October.
  17. Ahn, JaeBin & Khandelwal, Amit K. & Wei, Shang-Jin, 2011. "The role of intermediaries in facilitating trade," Journal of International Economics, Elsevier, Elsevier, vol. 84(1), pages 73-85, May.
  18. Joachim Wagner, 2011. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," Working Paper Series in Economics, University of Lüneburg, Institute of Economics 210, University of Lüneburg, Institute of Economics.
  19. James R. Markusen & Natalia Trofimenko, 2007. "Teaching Locals New Tricks: Foreign Experts as a Channel of Knowledge Transfers," NBER Working Papers 12872, National Bureau of Economic Research, Inc.
  20. Akerman, Anders, 2010. "A Theory on the Role of Wholesalers in International Trade based on Economies of Scope," Research Papers in Economics, Stockholm University, Department of Economics 2010:1, Stockholm University, Department of Economics.
  21. Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 31(3), pages 1358-93, September.
  22. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 42(1), pages 72-115, March.
  23. Felbermayr, Gabriel J. & Jung, Benjamin, 2011. "Trade intermediation and the organization of exporters," Tübinger Diskussionsbeiträge, University of Tübingen, School of Business and Economics 331, University of Tübingen, School of Business and Economics.
  24. Keesing, Donald B, 1983. "Linking Up to Distant Markets: South to North Exports of Manufactured Consumer Goods," American Economic Review, American Economic Association, American Economic Association, vol. 73(2), pages 338-42, May.
  25. Bernardo S. Blum & Sebastian Claro & Ignatius Horstmann, 2010. "Facts and Figures on Intermediated Trade," American Economic Review, American Economic Association, American Economic Association, vol. 100(2), pages 419-23, May.
  26. Fergal McCann, 2010. "Indirect Exporters," Working Papers, CEPII research center 2010-22, CEPII research center.
  27. Jennifer Abel-Koch, . "Who uses intermediaries in international trade? Evidence from firm-level survey data," Discussion Papers 11/25, University of Nottingham, GEP.
  28. David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 117(517), pages F134-F161, 02.
  29. Mayneris, Florian & Poncet, Sandra, 2013. "Chinese firms'entry to export markets : the role of foreign export spillovers," Policy Research Working Paper Series, The World Bank 6398, The World Bank.
  30. Michele Imbruno, 2014. "Trade Liberalization, Intermediate Inputs and Firm Efficiency: Direct versus Indirect Modes of Import," Discussion Papers 2014-02, University of Nottingham, GEP.
  31. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, American Economic Association, vol. 87(4), pages 545-64, September.
  32. Greenaway, David & Guariglia, Alessandra & Kneller, Richard, 2007. "Financial factors and exporting decisions," Journal of International Economics, Elsevier, Elsevier, vol. 73(2), pages 377-395, November.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Horst Raff & Joachim Wagner, 2013. "Foreign Ownership and the Extensive Margins of Exports: Evidence for Manufacturing Enterprises in Germany," CESifo Working Paper Series 4337, CESifo Group Munich.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:kie:kieliw:1848. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dieter Stribny).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.