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- Title
Financial dependence and exports: Entrants or incumbents?
- Authors
Lee, Kwan Yong
- Abstract
Using firm‐level customs data from 51 countries at different levels of development, we explore differential impacts of access to finance on incumbent and new exporters. Consistent with the literature, firms in sectors more dependent on external finance have higher exports based in financially more developed countries. This effect, however, occurs entirely through entrants, with no effect found for incumbents. The trade response of entrants works primarily through the extensive margin (number of exporters) rather than the intensive margin (average size). We further find access to external finance affects exporter entry rates while it does not affect exporter exit rates.
- Subjects
INCUMBENCY (Public officers); DEVELOPED countries; EXPORTERS; MARGINS (Security trading)
- Publication
Southern Economic Journal, 2023, Vol 89, Issue 4, p1102
- ISSN
0038-4038
- Publication type
Article
- DOI
10.1002/soej.12624