IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Financial Constraints and Exports: Evidence from Chinese Firms

  • Peter Egger
  • Michaela Kesina

This article assesses the role of credit constraints for exports at the firm level. Theoretical models by Chaney, Manova, and others suggest that credit constraints are detrimental for exports. We examine this hypothesis empirically at the firm level by using data on Chinese enterprises compiled by the National Bureau of Statistics of China. We approximate credit constraints by financial variables such as a firm's debt ratio or the liquid-to-total-capital ratio. We then consider the impact of these financial fundamentals on the extensive and the intensive margins of firm-level exports. In particular, we focus on the impact of credit constraints on a firm's propensity to export at all (which we model by means of a logit model) and on a firm's export--sales ratio (which we model by a fractional response model based on Papke and Wooldridge (1996 Journal of Applied Econometrics 11, 619--32). The empirical results confirm the negative relationship between exports and credit constraints suggested by previous theoretical work. Credit constrained firms are less likely to be exporters and have lower export quotas. The results are robust when using alternative explanatory variables and including further explanatory variables. (JEL Codes: F14; G32) Copyright The Author 2013. Published by Oxford University Press on behalf of Ifo Institute, Munich. All rights reserved. For permissions, please email: journals.permissions@oup.com, Oxford University Press.

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: http://hdl.handle.net/10.1093/cesifo/ifs036
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by CESifo in its journal CESifo Economic Studies.

Volume (Year): 59 (2013)
Issue (Month): 4 (December)
Pages: 676-706

as
in new window

Handle: RePEc:oup:cesifo:v:59:y:2013:i:4:p:676-706
Contact details of provider: Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Phone: +49 (89) 9224-0
Fax: 01865 267 985
Web page: http://cesifo.oxfordjournals.org/
Email:


More information through EDIRC

Order Information: Web: http://www.oup.co.uk/journals

No references listed on IDEAS
You can help add them by filling out this form.

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

When requesting a correction, please mention this item's handle: RePEc:oup:cesifo:v:59:y:2013:i:4:p:676-706. 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: (Oxford University Press)

or (Christopher F. Baum)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.