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Does Finance Really Matter for the Participation of SMEs in International Trade? Evidence from 8,080 East Asian Firms

Listed author(s):
  • Jinjarak, Yothin

    (Asian Development Bank Institute)

  • Mutuc, Paulo Jose

    (Asian Development Bank Institute)

  • Wignaraja, Ganeshan

    (Asian Development Bank Institute)

This paper studies factors associated with firm participation in export markets, focusing primarily on firm size and access to credit, based on a survey sample comprising observations of 8,080 small and medium enterprises (SMEs) (with fewer than 100 employees) and non-SME firms in developing East Asian countries across sectors. The main findings suggest the interdependent relationships between export participation, firm size, and access to credit. SMEs participating in export markets tend to gain more access to credit, while potential scale economies (firm sizes) of SMEs are positively associated with participation in export markets. The estimation results also point to the supportive influences of foreign ownership, worker education, and production certification on export participation, and the positive effects of financial certification, managerial experience, and collateral/loan value on access to credit for SMEs.

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File URL: http://www.adbi.org/files/2014.03.28.wp470.finance.matter.smes.trade.pdf
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Paper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 470.

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Length: 31 pages
Date of creation: 31 Mar 2014
Handle: RePEc:ris:adbiwp:0470
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