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Firm Exports, Foreign Ownership, and the Global Financial Crisis

Peter Eppinger and Marcel Smolka

No 8808, CESifo Working Paper Series from CESifo

Abstract: This paper shows theoretically and empirically how access to finance explains the exceptional export performance of foreign-owned firms. We build a model of heterogeneous exporters in which foreign-owned firms can access foreign capital markets via their multinational parents. The model predicts that foreign ownership makes exports more resilient to deteriorating credit conditions. To empirically identify this effect, we estimate a triple differences model using rich micro data from Spain and exploiting the global financial crisis as an exogenous shock to credit supply. We find that foreign ownership significantly stabilized firm exports in the crisis, in particular among financially vulnerable firms.

Keywords: firm exports; foreign ownership; multinational firms; financial frictions; financial crisis (search for similar items in EconPapers)
JEL-codes: F10 F14 F23 G01 G32 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cfn, nep-int and nep-sbm
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Working Paper: Firm Exports, Foreign Ownership, and the Global Financial Crisis (2015)
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