Financial constraints, exports and monetary integration - Financial constraints and exports: An analysis of Portuguese firms during the European monetary integration

Filipe Silva () and Carlos Carreira ()
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Filipe Silva: Faculdade de Economia, Universidade de Coimbra GEMF–Grupo de Estudos Monetários e Financeiros

No 39, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: Financial constraints are a key determinant that hinders firms' ability to export. This paper analyses the nexus between these constraints and firms' engagement in international trade, as well as it explores the impact of the European monetary integration process upon firms' financial constraints. Therefore, we estimate cash to cash-flow sensitivities for different periods (1996-2000 and 2001-2004) and different groups of firms, according to their exporting and importing activity. Our results indicate that, depending on their international openness, the European monetary integration seems to have generally helped reducing the degree of financial constraints faced by Portuguese firms. Additionally, our findings suggest that, rather than unconstrained firms self-selecting into exporting, firms' constraints were reduced after they started exporting.

Keywords: Financial constraints; Exports; European financial integration; Firm-level studies; Portugal (search for similar items in EconPapers)
JEL-codes: D92 F14 F36 G32 L00 L2 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2011-07, Revised 2011-07
New Economics Papers: this item is included in nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_39.pdf First version, 2011 (application/pdf)

Related works:
Working Paper: Financial constraints and exports: An analysis of Portuguese firms during the European monetary integration (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:mde:wpaper:0039

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