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Export Market Exit, Financial Pressure and the Crisis

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Listed:
  • Holger Görg
  • Marina-Eliza Spaliara

Abstract

Using firm-level data for the UK, we investigate the link between firms’ financial health, borrowing ratio and export exit, paying special attention to the recent financial crisis. Our results show that deterioration in the financial position of firms has increased the hazard of export exit during the crisis. We also find that the sensitivity of export exit to changes in firms’ financial condition is higher during the crisis for those firms which face increases in loan spreads associated with the firm-specific interest rate.

Suggested Citation

  • Holger Görg & Marina-Eliza Spaliara, 2013. "Export Market Exit, Financial Pressure and the Crisis," CESifo Working Paper Series 4363, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_4363
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    References listed on IDEAS

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    More about this item

    Keywords

    financial pressure; firm exit; financial health; exports;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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