Financial constraints and firm exports: accounting for heterogeneity, self-selection and endogeneity

Angelo Secchi, Federico Tamagni and Chiara Tomasi ()
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Chiara Tomasi: UNITN - Università degli Studi di Trento = University of Trento

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: The article examines the causal effect of financial constraints on firms' exports. We exploit a firm-level proxy of constraints based on credit ratings and available for a large panel of Italian exporting and non-exporting firms. Our estimation strategy allows to cure for self-selection into exports and endogeneity of financial constraints. At the same time, we can control for unobserved firm fixed effects both in the selection and in the export equation, thus identifying the effect on exports of within-firm changes in financial constraints status. We find that financial constraints produce a sizable reduction in the value of a firm's foreign sales.

Keywords: international trade; financial constraints (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

Published in Industrial and Corporate Change, 2015, 25 (5), pp.813-827. ⟨10.1093/icc/dtw033⟩

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Related works:
Journal Article: Financial constraints and firm exports: accounting for heterogeneity, self-selection, and endogeneity (2016)
Working Paper: Financial constraints and firm exports: accounting for heterogeneity, self-selection and endogeneity (2015)
Working Paper: Financial constraints and firm exports: accounting for heterogeneity, self-selection and endogeneity (2015)
Working Paper: Financial constraints and firm exports: accounting for heterogeneity, self-selection and endogeneity (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-01297118

DOI: 10.1093/icc/dtw033

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