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Financial constraints and Spanish manufacturing firms’ R&D and exporting

Author

Listed:
  • Juan A. Máñez

    (Universitat de València and ERICES)

  • María E. Rochina-Barrachina

    (Universitat de València and ERICES)

  • Juan A. Sanchis-Llopis

    (Universitat de València and ERICES)

  • Oscar Vicente

    (Universitat de València and ERICES)

Abstract

The aim of this paper is analysing the role of internal and external financial constraints in the firms’ joint decision to export and invest in R&D. Our empirical strategy consists of estimating a bivariate probit that explicitly acknowledges that a firm R&D and export decisions are interrelated. To proxy for internal financial constraints we use both a direct (cash-flow) and indirect measure (total factor productivity). External financial constrains are proxied using firms’ financial costs. Further, we analyse both if firms size and the onset of the current economic crisis have an impact on the relationship between financial constraints and firms’ R&D and export decisions. Using a representative sample of Spanish manufacturing firms for the period 1990-20010, we find that both internal and external finance constraints are relevant for the two firms’ strategic decisions analysed.

Suggested Citation

  • Juan A. Máñez & María E. Rochina-Barrachina & Juan A. Sanchis-Llopis & Oscar Vicente, 2013. "Financial constraints and Spanish manufacturing firms’ R&D and exporting," Working Papers 1324, Department of Applied Economics II, Universidad de Valencia.
  • Handle: RePEc:eec:wpaper:1324
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    References listed on IDEAS

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    More about this item

    Keywords

    exports; R&D; financial constraints; manufacturing firms; bivariate probit;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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