Exports and Financing Constraints Evidence from Turkey

Abstract

This paper examines the link between financing constraints and firm exporting behavior through an in-depth study of the Turkish manufacturing firms between 1996 and 2013. Utilizing a rich firm-level data set, we test for both ex-ante and ex-post links between exports and financing constraints to tackle potential selection biases and endogeneity problems. We find a positive and statistically significant export premium for financing constraints in general. In further testing we show that there is no significant evidence of pre-entry premium, while we find that financing constraints faced by exporting firms are eased once they start exporting, confirming an improvement in the financial conditions of export starters compared to non-exporters.

Finansal Kısıtlar ve İhracat İlişkisi: Türkiye Metal Eşya, Makine ve Gereç Yapım İmalat Sanayisi için Bir İnceleme

“…In other words, the effect of financing constraints on exports is non-negligible for an R&D-intensive sector: the fabricated metal products, machinery, and equipment sector in the Turkish economy. The findings are in line with Gezici et al (2018) and Yaldız Hanedar (2018) for the Turkish economy.…”

“…The findings of the studies that examine the link between financing constraints and exports in the Turkish economy are mixed. While Gezici et al (2018) and Yaldız Hanedar (2018) find this relationship is negative, Akarım (2013) finds that is negative.…”