Financial Dependence and Intensive Margin of Trade

Melise Jaud, Madina Kukenova and Martin Strieborny

Working Papers from Business School - Economics, University of Glasgow

Abstract: This paper examines the transmission process from finance to the real economy in the context of product-level export survival. We find that conditional on the specific financial needs of exported products, banks and stock markets play distinctive roles in helping exporters survive in foreign markets. Stock markets rather than banks help exporters who lack easily collateralizable tangible assets. Active rather than large stock markets facilitate exports of products requiring high levels of working capital. And the trade credit can act as a substitute only for bank financing and only in the presence of well-established export links.

Keywords: finance and export survival; transmission from finance to real economy; banks versus stock markets (search for similar items in EconPapers)
JEL-codes: F14 G10 G21 (search for similar items in EconPapers)
Date: 2021-08
New Economics Papers: this item is included in nep-ban, nep-cwa, nep-fdg, nep-int and nep-isf
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Financial dependence and intensive margin of trade (2009)
Working Paper: Financial dependence and intensive margin of trade (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2021_14

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