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Financial Constraints and Export Performances: Evidence from Brazilian Micro-Data

Author

Listed:
  • Fatma Bouattour

    () (PSL, University of Paris-Dauphine, LEDa, DIAL UMR 225, IRD)

Abstract

This paper explores the e§ects of Önancial constraints on export performances of Brazilian exporters in 2010. SpeciÖcally, I revisit the role of Örm size as a predictor of Örm-level Önancial constraints and take into account the sector-level Önancial constraints. In order to capture the speciÖcities of the Brazilian market, I use sector-level measures of dependence on external Önance computed over Brazilian data and following the method of Rajan and Zingales (1998, RZ). Since Brazilian export data are presented in ranges of value, I estimate an interval regression model (Conroy, 2005). The results conÖrm that larger Örms have better export performance, and that the size advantage is reduced in Brazilian sectors that depend on external Önance/ have better access to Önance. These Öndings remain robust when I control for the regional heterogeneity in Brazil and the legal status of the exporting Örms. I then consider the sector-level heterogeneity in terms of inherent needs of external Önance by using RZ indicators. The results show that large Örms are less export performant in sectors that are by nature more dependent on external Önance. This result can be explained by the imperfections that characterize the Brazilian Önancial market.

Suggested Citation

  • Fatma Bouattour, 2016. "Financial Constraints and Export Performances: Evidence from Brazilian Micro-Data," Working Papers DT/2016/18, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt201618
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    References listed on IDEAS

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    More about this item

    Keywords

    Firm size; Sector-level external Önance dependence; Financial market imperfections; Exports; Brazil; Interval Regression.;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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