IDEAS home Printed from https://ideas.repec.org/a/cii/cepiie/2020-q2-162-1.html

Manufacturing firms’ export activity: Business and financial cycles overlaps!

Author

Listed:
  • Juan Laborda
  • Vicente Salas
  • Cristina Suárez

Abstract

This paper models how the business and financial cycles interact in firms’ export activity. Specifically, we study the influence of macroeconomic variables on the decision to export and on the volume of exports, being controlled by firms’ characteristics. A distinction is made between the firms’ export activity in reaction to increases in external demand after improvements in national competitiveness, and firms’ exporting in response to a reduction in aggregate internal demand. The decision to export depends positively on the countries’ competitiveness variables, and the volume of exports also depends positively on national competitiveness and negatively on growth of internal demand. We also find a positive influence of the leverage of the economy on extensive and intensive export activity. Our results suggest that the financial cycle overlaps with the business cycle in influencing firm export activity decisions.

Suggested Citation

  • Juan Laborda & Vicente Salas & Cristina Suárez, 2020. "Manufacturing firms’ export activity: Business and financial cycles overlaps!," International Economics, CEPII research center, issue 162, pages 1-14.
    • Handle: RePEc:cii:cepiie:2020-q2-162-1
    as

    Download full text from publisher

    File URL: https://www.sciencedirect.com/science/article/pii/S2110701719301933
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cii:cepiie:2020-q2-162-1. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cepiifr.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.