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Financial Health and the Intensive Margin of Trade

Listed author(s):
  • Deniz Baglan

    ()

    (Department of Economics, Howard University)

  • Hakan Yilmazkuday

    ()

    (Department of Economics, Florida International University)

Using data on 2380 firms from nine emerging countries, this paper shows that there is a positive and significant relationship between financial health and the intensive margin of trade. The magnitude of this positive relationship is shown to depend on several firm characteristics, where the effects of financial health on firm-level exports are larger for firms with higher levels of export, bigger size (measured by assets), higher productivity (measured by value added per worker), and moderate levels of financial health (measured by cash flow over total assets). The results are robust to the consideration of foreign ownership and country characteristics as well as industry and time fixed effects.

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File URL: http://economics.fiu.edu/research/working-papers/2016/1607/1607.pdf
File Function: First version, 2016
Download Restriction: no

Paper provided by Florida International University, Department of Economics in its series Working Papers with number 1607.

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Length: 25 pages
Date of creation: Dec 2016
Handle: RePEc:fiu:wpaper:1607
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Fax: (305) 348-1524
Web page: http://economics.fiu.edu

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