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Financial constraints and firm exports: accounting for heterogeneity, self-selection and endogeneity

Author

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  • Angelo Secchi

    () (PSE - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Federico Tamagni

    () (Scuola Superiore Sant'Anna - Institute of Economics)

  • Chiara Tomasi

    () (Università di Trento - Dipartimento di Economia e Management)

Abstract

The paper examines the causal effect of financial constraints on firm exports. We exploit a firm-level proxy of constraints based on credit ratings and available for a large panel of Italian exporting and non exporting firms. Our estimation strategy allows to cure for self-selection into exports and endogeneity of financial constraints. At the same time, we can control for unobserved firm fixed effects both in the selection and in the export equation, thus identifying the effect on exports of within firm changes in financial constraints status. We find that financial constraints produce a sizable reduction in the value of firm foreign sales
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Angelo Secchi & Federico Tamagni & Chiara Tomasi, 2015. "Financial constraints and firm exports: accounting for heterogeneity, self-selection and endogeneity," PSE - Labex "OSE-Ouvrir la Science Economique" hal-01297118, HAL.
  • Handle: RePEc:hal:pseose:hal-01297118
    Note: View the original document on HAL open archive server: https://hal-paris1.archives-ouvertes.fr/hal-01297118
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    References listed on IDEAS

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    Cited by:

    1. Angelo Secchi & Federico Tamagni & Chiara Tomasi, 2014. "The micro patterns of export diversification under financial constraints," Industrial and Corporate Change, Oxford University Press, vol. 23(6), pages 1595-1622.
    2. Bernini, Michele & Guillou, Sarah & Bellone, Flora, 2015. "Financial leverage and export quality: Evidence from France," Journal of Banking & Finance, Elsevier, vol. 59(C), pages 280-296.
    3. Dhyne, Emmanuel & Demian, Calin-Vlad & Harasztosi, Péter & Meriküll, Jaanika & Lalinsky, Tibor & Cazacu, Ana-Maria & Bugamelli, Matteo & Soares, Ana Cristina & Berthou, Antoine & Oropallo, Filippo, 2015. "Assessing European firms' exports and productivity distributions: the CompNet trade module," Working Paper Series 1788, European Central Bank.

    More about this item

    Keywords

    international trade; financial constraints;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G20 - Financial Economics - - Financial Institutions and Services - - - 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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