Exporting, Capital Investment and Financial Constraints
AbstractMany firms cite financial constraints as some of the most important impediments to their investment and growth. Using a unique data set from the Czech Republic this paper investigates the importance of financing constraints in the context of exporters. It finds that exporters are less financially constrained than non-exporters. However, after carefully correcting for possible endogeneity and selection issues, the evidence points to less constrained firms self-selecting into exporting rather than exporting alleviating firms' financial constraints. The analysis suggests that easing firms' credit constraints may play an important role in facilitating exporting and that welldeveloped financial markets that would decrease firms' cost of external finance may be needed in order to benefit from selling in foreign markets.
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Bibliographic InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 25209.
Date of creation: 2009
Date of revision:
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exporting; cash flow; financial constraints;
Other versions of this item:
- Vlad Manole & Mariana Spatareanu, 2009. "Exporting, Capital Investment and Financial Constraints," Working Papers Rutgers University, Newark 2009-005, Department of Economics, Rutgers University, Newark.
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-23 (All new papers)
- NEP-CFN-2010-01-23 (Corporate Finance)
- NEP-INT-2010-01-23 (International Trade)
- NEP-TRA-2010-01-23 (Transition Economics)
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- Emanuele Forlani, 2010. "Liquidity Constraints and Firm’s Export Activity," Development Working Papers 291, Centro Studi Luca d\'Agliano, University of Milano, revised 30 Apr 2010.
- Filipe Silva & Carlos Carreira, 2011.
"Financial constraints, exports and monetary integration - Financial constraints and exports: An analysis of Portuguese firms during the European monetary integration,"
0039, Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação, revised Jul 2011.
- Filipe Silva & Carlos Carreira, 2011. "Financial Constraints and Exports: An Analysis of Portuguese Firms During the European Monetary Integration," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, issue 34, pages 35-56, December.
- 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.
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UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
- Pauline Bourgeon & Jean-Charles Bricongne & Guillaume Gaulier, 2012. "Financing Time to Trade: Evidence from French firms," Documents de travail du Centre d'Economie de la Sorbonne 12016, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Saeed Abubakr & Franco Esposito, 2012. "Bank concentration and financial constraints on firm investment in UK," Studies in Economics and Finance, Emerald Group Publishing, vol. 29(1), pages 11-25, March.
- Pauline Bourgeon & Jean-Charles Bricongne & Guillaume Gaulier, 2012. "Financing time to trade : Evidence from French firms," Post-Print halshs-00677343, HAL.
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