Firm Innovation, Financial Constraints and Exports - Evidence From Indian SMEs

Ketan Reddy ()
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Ketan Reddy: Department of Economics and Public Policy, Indian Institute of Management Raipur, Raipur, India

Asian Economics Letters, 2024, vol. 5, issue 1, 1-5

Abstract: Using rich firm-level data on 4517 small and medium-sized Indian manufacturing firms, we explore the implications of financial constraints on firm innovation and further investigate the interplay between financial constraints and export participation on firm innovation. Our findings highlight a negative association between firm innovation and financial constraints and a positive association between firm innovation and export. Moreover, we find that firms participating in international trade are well-positioned to offset the challenges of financial constraints on firm innovation.

Keywords: Firm Innovation; Financial constraints; Export; SME (search for similar items in EconPapers)
JEL-codes: B17 F1 F14 L11 O3 (search for similar items in EconPapers)
Date: 2024
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