Export Survival and Foreign Financing

Laura D’Amato, Máximo Sangiácomo and Martin Tobal
Additional contact information
Laura D’Amato: Universidad de Buenos Aires - IIEP
Máximo Sangiácomo: BCRA y UNDLP

No 16, Working Papers from Red Nacional de Investigadores en Economía (RedNIE)

Abstract: Exporting is a finance-intensive activity. But credit markets are frequently underdeveloped and domestic financing tends to be scarce in developing countries, for which a strong export sector is crucial for economic development. Thus, this paper investigates whether foreign financing provides better financing conditions than domestic financing and/or otherwise unavailable external finance, thus increasing export survival rates in a developing country. To that end, it assembles a unique dataset, rarely available for other countries, containing information on foreign credit obtained by Argentine exporters. Based on the empirical models conventionally used in the export survival literature—specifically the probit random effects and the clog-log setups—we provide evidence of a positive link between foreign financing and export survival. This finding is confirmed using an instrumental variable approach.

Keywords: International; trade; Credit; foreign; Financing; export; survival (search for similar items in EconPapers)
JEL-codes: F10 F13 G20 G28 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2020-08
New Economics Papers: this item is included in nep-cfn and nep-int
References: Add references at CitEc
Citations:

Downloads: (external link)
https://drive.google.com/file/d/1c4SyehAcpFqessdsQNj1SiBq0Ew6PZLP/view (application/pdf)

Related works:
Working Paper: Export survival and foreign financing (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aoz:wpaper:16

Access Statistics for this paper

More papers in Working Papers from Red Nacional de Investigadores en Economía (RedNIE) Contact information at EDIRC.
Bibliographic data for series maintained by Laura Inés D Amato ().