Financial Health and the Intensive Margin of Trade

Deniz Baglan () and Hakan Yilmazkuday
Additional contact information
Deniz Baglan: Department of Economics, Howard University

No 1607, Working Papers from Florida International University, Department of Economics

Abstract: Using data on 2380 firms from nine emerging countries, this paper shows that there is a positive and significant relationship between financial health and the intensive margin of trade. The magnitude of this positive relationship is shown to depend on several firm characteristics, where the effects of financial health on firm-level exports are larger for firms with higher levels of export, bigger size (measured by assets), higher productivity (measured by value added per worker), and moderate levels of financial health (measured by cash flow over total assets). The results are robust to the consideration of foreign ownership and country characteristics as well as industry and time fixed effects.

Keywords: Financial Health; Intensive Margin of Trade; Threshold Analysis; Emerging Markets (search for similar items in EconPapers)
JEL-codes: D24 F10 F14 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2016-12
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://economics.fiu.edu/research/pdfs/2016_working_papers/1607.pdf First version, 2016 (application/pdf)

Related works:
Journal Article: Financial Health and the Intensive Margin of Trade (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:1607

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