Propensity to Export of Italian Firms: Does Local Financial Development Matter?

Jennifer GRISORIO () and Maurizio LOZZI ()
Additional contact information
Jennifer GRISORIO: ARTI Puglia
Maurizio LOZZI: Banca d'Italia

Rivista Italiana degli Economisti, 2012, vol. 17, issue 2, pages 200

Abstract: Does local banking development stimulate firms' propensity to export? This is the question on which we try to shed light in this article. Indeed, the purpose of our paper is twofold. From a theoretical point of view we aim at demonstrating that in a country with an industrial structure consisting primarily of small and medium-sized firms strongly dependent from local banks, local financial development might represent an additional element influencing firms' propensity to export. At the same time, we provide empirical evidence on this relationship for Italy that can be considered a very interesting case given its high degree of heterogeneity in term of local financial development across geographical areas. Previous literature has shown that finance is relevant for international trade at the country or industry level. We show that it is relevant at the firm level. Specifically we provide evidence that local banking development affects the propensity to exporting, especially for small and medium sized firms.

Keywords: Binary Choice Models; Exports; Financial Development; Sunk Costs (search for similar items in EconPapers)
JEL-codes: C25 F23 G21 L10 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.mulino.it/rivisteweb/scheda_articolo.php?id_articolo=37498
download restricted to subscribers, see http://www.mulino.it for details

Related works:
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: http://EconPapers.repec.org/RePEc:rie:review:v:17:y:2012:i:2:n:6

Ordering information: This journal article can be ordered from
http://www.mulino.it ... a.php?issn=1593-8662

Access Statistics for this article

More articles in Rivista Italiana degli Economisti from SIE - Societa' Italiana degli Economisti (I)
Contact information at EDIRC.
Series data maintained by SIE ().