@inproceedings{Espanol2006exporters,
abstract = {Trade-related characteristics have only been recently started to be
included in empirical studies analysing the determinants of the financial
constraints faced by firms. A result broadly shared by these studies
is that exporting firms tend to be those less financially constrained.
In this paper we test this result using panel data built up from quarterly
balance sheet information for 74 Argentinean big firms covering
the years of the currency board regime (1992-2001). We estimate an
investment equation splitting up the sample between exporters and
non-exporters. Using three alternative econometric models (random
effects, fixed effects and instrumental variables) we find that, contrary
to what is commonly stressed in the literature, exporting firms are the
ones facing larger financial constraints on investment. We propose an
explanation for this original result based on the currency appreciation
that follows financial liberalisation processes in emerging countries,
particularly in Argentina, which triggers a profit squeeze phenomenon
for exportable firms, reducing their investment capacity.},
author = {Paula Espanol},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {O16; E22; O54; 330; financial constraint; investment; foreign trade; Argentine},
language = {eng},
number = {7},
series = {Proceedings of the German Development Economics Conference, Berlin 2006 / Verein f\"{u}r Socialpolitik, Research Committee Development Economics},
title = {Why exporters can be financially constrained in a recently liberalised economy? A puzzle based on Argentinean firms during the 1990s},
url = {http://hdl.handle.net/10419/19835},
year = {2006}
}
