Template-Type: ReDIF-Paper 1.0
Author-Name: Laura D'Amato
Author-X-Name-First: Laura
Author-X-Name-Last: D'Amato
Author-Name: Máximo Sangiácomo
Author-X-Name-First: Máximo
Author-X-Name-Last: Sangiácomo
Author-Name: Martin Tobal
Author-X-Name-First: Martin
Author-X-Name-Last: Tobal
Title: Export survival and foreign financing
Abstract: Exporting is a finance-intensive activity. But credit markets are frequently underdeveloped and domestic financing tends to be scarce in developing countries, for which a strong export sector is crucial for economic development. Thus, this paper investigates whether foreign financing provides better financing conditions than domestic financing and/or otherwise unavailable external finance, thus increasing export survival rates in a developing country. To that end, it assembles a unique dataset, rarely available for other countries, containing information on foreign credit obtained by Argentine exporters. Based on the empirical models conventionally used in the export survival literature - specifically the probit random effects and the clog-log setups - we provide evidence of a positive link between foreign financing and export survival. This finding is confirmed using an instrumental variable approach.
Length: 37 pages
Creation-Date: 2020-08
File-URL: https://www.bis.org/publ/work877.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work877.htm
File-Format: text/html
Number: 877
Classification-JEL: F10, F13, G20, G28
Keywords: international trade, credit, foreign financing, export survival
Handle: RePEc:bis:biswps:877