Access to banking finance and exporting

Roberto Alvarez and Ricardo López Rago

Industrial and Corporate Change, 2014, vol. 23, issue 6, 1523-1539

Abstract: This article 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 this episode as a quasi-experiment to study the impact of access to banking finance on exporting. 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.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1093/icc/dtu031 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Access to Banking Finance and Exporting (2014)
Working Paper: Access to Banking Finance and Exporting (2014)
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: https://EconPapers.repec.org/RePEc:oup:indcch:v:23:y:2014:i:6:p:1523-1539.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by Josef Chytry

More articles in Industrial and Corporate Change from Oxford University Press and the Associazione ICC Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().