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Financial Factors and Manufacturing Exports:Theory and Firm-level Evidence From Egypt

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  • Youssouf Kiendrebeogo

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Alexandru Minea

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper focuses on the effects of financial factors on manufacturing firms' export participation. Using a simple dynamic discrete choice model, we first present the intuition according to which financial constraints reduce the probability of exporting. Then, based on a panel of Egyptian manufacturing firms over the 2003-2008 period, we estimate the impact of financial constraints on export market participation. Our main results show that, unlike financial liquidity, financial constraints reduce the export participation of Egyptian firms. In addition, financial constraints equally have a negative impact on alternative measures of the export activity, namely the export intensity and the time firm take before starting to export

Suggested Citation

  • Youssouf Kiendrebeogo & Alexandru Minea, 2013. "Financial Factors and Manufacturing Exports:Theory and Firm-level Evidence From Egypt," Working Papers halshs-00710718, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00710718
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00710718v2
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Joachim Wagner, 2014. "Credit constraints and exports: evidence for German manufacturing enterprises," Applied Economics, Taylor & Francis Journals, vol. 46(3), pages 294-302, January.
    2. Deniz Baglan & Hakan Yilmazkuday, 2018. "Financial Health and the Intensive Margin of Trade," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(6), pages 1304-1319, May.
    3. repec:eco:journ1:2018-01-22 is not listed on IDEAS
    4. Joachim Wagner, 2014. "Credit constraints and exports: a survey of empirical studies using firm-level data," Industrial and Corporate Change, Oxford University Press, vol. 23(6), pages 1477-1492.

    More about this item

    Keywords

    Financial Constraints; Exports; Firm-Level Evidence; Sunk Costs;

    JEL classification:

    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • F10 - International Economics - - Trade - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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