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Financial Health, Exports and Firm Survival: Evidence from UK and French Firms

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  • Holger Görg
  • Marina-Eliza Spaliara

Abstract

type="main" xml:id="ecca12080-abs-0001"> We use firm-level data for the UK and France to assess the role of exporting in the link between financial health and firm survival. We examine whether firms at different stages of export activity (starters, exiters, continuers, switchers) react differently to changes in financial variables. In general, export starters and exiters experience much stronger adverse effects of financial constraints for their survival prospects. By contrast, the exit probability of continuous exporters and export switchers is less negatively affected by financial characteristics. These relationships between exporting, finance and survival are broadly similar in the UK and French samples.

Suggested Citation

  • Holger Görg & Marina-Eliza Spaliara, 2014. "Financial Health, Exports and Firm Survival: Evidence from UK and French Firms," Economica, London School of Economics and Political Science, vol. 81(323), pages 419-444, July.
    • Handle: RePEc:bla:econom:v:81:y:2014:i:323:p:419-444
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    7. Joachim Wagner, 2014. "Credit constraints and exports: evidence for German manufacturing enterprises," Applied Economics, Taylor & Francis Journals, vol. 46(3), pages 294-302, January.
    8. Joachim Wagner, 2016. "Credit Constraints and Exports: A Survey of Empirical Studies Using Firm Level Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 12, pages 401-421, World Scientific Publishing Co. Pte. Ltd..
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    13. Görg, Holger & Spaliara, Marina-Eliza, 2018. "Export market exit and financial health in crises periods," Journal of Banking & Finance, Elsevier, vol. 87(C), pages 150-163.
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    16. Mélise Jaud & Madina Kukenova & Martin Strieborny, 2009. "Financial dependence and intensive margin of trade," PSE Working Papers halshs-00575005, HAL.
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    21. Christos Axioglou & Nicos Christodoulakis, 2021. "Which firms survive in a crisis? Investigating Gibrat’s Law in Greece 2001–2014," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(2), pages 159-217, June.
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    JEL classification:

    • F1 - International Economics - - Trade
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • G3 - Financial Economics - - Corporate Finance and Governance

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