Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26816
Authors: 
Stiebale, Joel
Year of Publication: 
2008
Series/Report no.: 
Ruhr economic papers 51
Abstract: 
Recent theoretical and empirical contributions stress the importance of financial development for international trade. This paper investigates whether financial constraints matter for foreign market entry at the firm level using dynamic panel data techniques. The empirical framework is applied to a panel of French manufacturing firms over the years 1998-2005. Although financial indicators are significantly correlated with export status and export share, there is no evidence that financial constraints have a direct impact on foreign market participation or sales in foreign markets once observed and unobserved firm heterogeneity is controlled for. This result also holds for subgroups of firms that are more likely to face financial constraints and industries that are more dependent on financial factors.
Subjects: 
Exports
financial constraints
sunk costs
JEL: 
F14
D92
C23
ISBN: 
978-3-86788-054-1
Document Type: 
Working Paper

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