Credit Constraints, Technology Choice and Exports: A Firm‐level Study for Latin American Countries

Hasan, Syed M.; Sheldon, Ian M.

doi:10.1111/rode.12248

Cited by 16 publications

(22 citation statements)

References 12 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Furthermore, financially constrained establishments are significantly less likely to penetrate new markets and export (Minetti and Zhu 2011), to pursue R&D activities (Mancusi and Vezzulli 2010;Mohnen et al 2008;Männasoo and Meriküll 2011;Hajivassilou andSavignac 2008 or Álvarez andCrespi 2011) to invest in capital goods (Hasan 2013) or to offer formal training programs to their employees (Popov 2013), to name but a few of their negative consequences.…”

Section: Endnotesmentioning

confidence: 99%

Financing Constraints and Firm Growth in Emerging Europe

Leitner

2016

South East European Journal of Economics and Business

View full text Add to dashboard Cite

Alarmingly, the burgeoning empirical literature on the causes and effects of financing constraints finds considerable and robust evidence that financing constraints severely affect firm behavior, obstruct firm performance and greatly curb firm growth. 1 Theoretically, the presence of financing constraints is ascribed to capital market imperfections such as non-negligible information asymmetries between entrepreneurs and uninformed outside investors. For instance, in the model of credit rationing developed by Stiglitz and Weiss (1981), imperfect information induces banks to resort to rationing credits instead of increasing the interest rate to maximize profits. Since the interest rate banks charge for credits also affects the riskiness of their pool of loans through an adverse selection effect and a negative incentive effect, higher interest rates would both attract riskier projects and induce debtors to realize projects with a generally lower probability of success but higher returns when successful. Hence, the on average higher riskiness of potential borrowers lowers overall profits for the banks and induces profit-maximizing banks to restrict the number of credits they grant.Empirically, a quickly growing body of literature finds strong evidence of financing constraints, but also stresses that the prevalence and extent of such constraints strongly depend on specific firm characteristics. For instance, due to insufficient collateral and resources, smaller firms are more financially constrained Sandra M. Leitner ABSTRACT The paper aims to shed light on the effects of different types of financing constraints on firm sales and employment growth in Emerging

show abstract

Section: Endnotesmentioning

confidence: 99%

Financing Constraints and Firm Growth in Emerging Europe

Leitner

2016

South East European Journal of Economics and Business

View full text Add to dashboard Cite

show abstract

“…4 See Espanol (2007), Castagnino et al (2013), Egger and Kesina (2013), Manole and Spatareanu (2010), Kiendrebeogo and Minea (2012), Ito and Terada-Hagiwara (2011), Forlani (2010), Cole et al (2010), Wang (2010). 5 Studies such as by Li and Yu (2009), Buch et al (2009), Muûls (2008), Berman and Héricourt (2010), and Hasan et al (2013) have found rather weak or limited evidence, while studies such as by Manova (2012) have shown that two thirds of the trade-specific effect of financial frictions are due to the intensive margin of trade 6 Nonparametric estimation methodology is a useful tool and widely applied in many areas of economics. The following are studies that apply nonparametric estimation techniques, among many others: Henderson and Millimet (2005) estimate the impact of environmental policy on state-level output.…”

Section: Introductionmentioning

confidence: 99%

Financial Health and the Intensive Margin of Trade

Baglan

Yilmazkuday

2018

Emerging Markets Finance and Trade

View full text Add to dashboard Cite

Using data on 2380 …rms from nine emerging countries, this paper shows that there is a positive and signi…cant relationship between …nancial health and the intensive margin of trade.The magnitude of this positive relationship is shown to depend on several …rm characteristics, where the e¤ects of …nancial health on …rm-level exports are larger for …rms with higher levels of export, bigger size (measured by assets), higher productivity (measured by value added per worker), and moderate levels of …nancial health (measured by cash ‡ow over total assets). The results are robust to the consideration of foreign ownership and country characteristics as well as industry and time …xed e¤ects. JEL Classi…cation: D24, F10, F14The authors would like to thank Ali M. Kutan, and three anonymous referees for their helpful comments and suggestions. The authors also would like to thank Nicolas Berman for sharing the data used in this paper. The usual disclaimer applies.

show abstract

“…5 Studies such as by Li and Yu (2009), Buch et al (2009), Muûls (2008), Berman and Héricourt (2010), and Hasan et al (2013) have found rather weak or limited evidence, while studies such as by Manova (2012) have shown that two thirds of the trade-specific effect of financial frictions are due to the intensive margin of trade…”

Section: Introductionmentioning

confidence: 99%

Financial Health and the Intensive Margin of Trade

Baglan

Yilmazkuday

2014

SSRN Journal

View full text Add to dashboard Cite

Using data on 2380 …rms from nine emerging countries, this paper shows that there is a positive and signi…cant relationship between …nancial health and the intensive margin of trade. The magnitude of this positive relationship is shown to depend on several …rm characteristics, where the e¤ects of …nancial health on …rm-level exports are larger for …rms with higher levels of export, bigger size (measured by assets), higher productivity (measured by value added per worker), and moderate levels of …nancial health (measured by cash ‡ow over total assets). The results are robust to the consideration of foreign ownership and country characteristics as well as industry and time …xed e¤ects.

show abstract

Credit Constraints, Technology Choice and Exports: A Firm‐level Study for Latin American Countries

Cited by 16 publications

References 12 publications

Financing Constraints and Firm Growth in Emerging Europe

Financing Constraints and Firm Growth in Emerging Europe

Financial Health and the Intensive Margin of Trade

Financial Health and the Intensive Margin of Trade

Contact Info

Product

Resources

About