Financial constraints and firm exports: accounting for heterogeneity, self-selection, and endogeneity

Angelo Secchi, Federico Tamagni and Chiara Tomasi ()

Industrial and Corporate Change, 2016, vol. 25, issue 5, 813-827

Abstract: The article examines the causal effect of financial constraints on firms’ exports. We exploit a firm-level proxy of constraints based on credit ratings and available for a large panel of Italian exporting and non-exporting firms. Our estimation strategy allows to cure for self-selection into exports and endogeneity of financial constraints. At the same time, we can control for unobserved firm fixed effects both in the selection and in the export equation, thus identifying the effect on exports of within-firm changes in financial constraints status. We find that financial constraints produce a sizable reduction in the value of a firm’s foreign sales.

JEL-codes: F10 F14 F36 G20 G32 L25 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Financial constraints and firm exports: accounting for heterogeneity, self-selection and endogeneity (2015)
Working Paper: Financial constraints and firm exports: accounting for heterogeneity, self-selection and endogeneity (2015)
Working Paper: Financial constraints and firm exports: accounting for heterogeneity, self-selection and endogeneity (2015)
Working Paper: Financial constraints and firm exports: accounting for heterogeneity, self-selection and endogeneity (2014)
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