Credit constraints and firm exports: Evidence from SMEs in emerging and developing countries

Filomena Pietrovito () and Alberto Pozzolo
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Filomena Pietrovito: University of Molise

No 441, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: We study the relationship between credit contraints and export behavior using a large and heterogeneous sample of small and medium size firms from 65 emerging and developing countries between 2003 and 2014. We measure credit contraints by means of each firm's self-assessment of whether it is credit rationed, and we follow an instrumental variable approach that uses firm-level instruments to address the potential endogeneity of credit constraints with respect to export performance. We find robust evidence of a negative, statistically and economically significant effect of financial constraints on both the probability that a firm exports (the extensive margin of exports) and the share of exports over total sales (the intensive margin of exports).

Keywords: export decisions; margin of exports; credit contraints; firm level (search for similar items in EconPapers)
JEL-codes: D22 F10 F14 (search for similar items in EconPapers)
Pages: 33
Date: 2019-01-11
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-ent, nep-int and nep-sbm
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:csl:devewp:441

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