2011/24 | LEM Working Paper Series | |
Exporting under financial constraints: margins, switching dynamcs and prices |
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Angelo Secchi, Federico Tamagni, Chiara Tomasi |
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Keywords | ||
Financial constraints, margins of export, export prices
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JEL Classifications | ||
F10, F14, F30, G20
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Abstract | ||
Using data on cross border transactions together with an informative
measure of financing constraints this paper provides new evidence that
limited access to external capital narrows the scale of foreign sales,
the exporters? product scope and the number of trade partners. It
shows that constrained firms have a reduced probability of adding and
a higher probability of dropping products and destinations. Further it
documents that constrained firms sell their products at higher prices
as compared to unconstrained firms. All the results are robust to
specific control for unobserved heterogeneity, self-selection into
export and potential endogeneity of the financial constraints proxy.
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