Access to Banking Finance and Exporting

Roberto Alvarez and Ricardo López Rago

No 68, Working Papers from Brandeis University, Department of Economics and International Business School

Abstract: This paper uses firm-level data for the period 1995-2002 to examine whether access to finance increases the probability of exporting of Chilean manufacturing plants. We exploit information on firms´ access to banking debt and changes in the real exchange rate ??RER?? to identify the causal effect of finance on exporting. This is an interesting case to study. The Chilean economy experienced a sustained RER depreciation since 1999, which increased export profitability. We use these changes in RER as a quasi-experiment to study the impact of access to banking finance. Our results show that RER depreciations increase the probability of exporting for firms with access to banking finance and especially for firms in industries with higher financial needs. These results are robust to controlling for other firm characteristics affecting the probability of exporting and also for time varying industry-specific shocks that may affect export performance and banking finance.

Keywords: Exporting; Banking Finance; Credit Constraints; Firm-Level Data; Chile (search for similar items in EconPapers)
JEL-codes: F14 O16 O54 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2014-03
New Economics Papers: this item is included in nep-cfn, nep-eff, nep-int and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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http://www.brandeis.edu/economics/RePEc/brd/doc/Brandeis_WP68.pdf First version, 2014 (application/pdf)

Related works:
Journal Article: Access to banking finance and exporting (2014)
Working Paper: Access to Banking Finance and Exporting (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:brd:wpaper:68

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