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Exporting, capital investment and financial constraints

Author

Listed:
  • Vlad Manole

    (The Conference Board)

  • Mariana Spatareanu

    (Rutgers University)

Abstract

Many firms cite financial constraints as some of the most important impediments to their investment and growth. Using a unique data set from the Czech Republic this paper investigates the importance of financing constraints in the context of exporters. It finds that exporters are less financially constrained than non-exporters. However, after carefully correcting for possible endogeneity and selection issues, the evidence points to less constrained firms self-selecting into exporting rather than exporting alleviating firms’ financial constraints.

Suggested Citation

  • Vlad Manole & Mariana Spatareanu, 2010. "Exporting, capital investment and financial constraints," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(1), pages 23-37, April.
    • Handle: RePEc:spr:weltar:v:146:y:2010:i:1:d:10.1007_s10290-009-0040-3
    DOI: 10.1007/s10290-009-0040-3
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Exporting; Cash flow; Financial constraints;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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