Firms' Export Decisions : Demand Trumps Financial Shocks
This paper studies the relationship between access to credit, demand shocks, and export market adjustments using firm-level panel survey data for 24 economies in the Eastern Europe and Central Asian region. The study finds that domestic shocks to d...
| Main Authors: | , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/360281485353684824/Firms-export-decisions-demand-trumps-financial-shocks http://hdl.handle.net/10986/25961 |
| Summary: | This paper studies the relationship
between access to credit, demand shocks, and export market
adjustments using firm-level panel survey data for 24
economies in the Eastern Europe and Central Asian region.
The study finds that domestic shocks to demand have a
significant influence on the firm's decision to
participate in international markets (extensive margin) and
on the firm's share of foreign sales (intensive
margin). Foreign shocks to demand only affect the
firm's share of foreign sales. Conversely, the role of
financial constraints on either the extensive or the
intensive margin is more nuanced. The results are robust to
various specifications of financial constraints and
different estimation methods. |
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