Bank internationalization and firm exports: evidence from matched firm-bank data

Raffaello Bronzini () and Alessio D'Ignazio

No 1055, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: In this paper we investigate whether new exporter firms have a higher probability of starting to export to the countries where their financing banks have already established their branches. The underlying mechanism we hypothesize is based on the transmission of foreign market knowledge from banks to firms, so as to cut down information barriers to international trade. In those countries where such information is arguably more precious to the firm, we found a significant positive relationship between a firm’s probability of beginning to export to one market, and the presence in the same market of a branch of the firm’s financing bank. Coherently with the mechanism hypothesized, we find a stronger effect for closer firm-bank relationships, and when banks have established their branches abroad over a longer time period.

Keywords: internationalization; export; bank-firm relationships (search for similar items in EconPapers)
JEL-codes: F10 G21 (search for similar items in EconPapers)
Date: 2016-02
New Economics Papers: this item is included in nep-bec, nep-cse and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Bank Internationalization and Firm Exports: Evidence from Matched Firm–Bank Data (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1055_16

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