Firms' Export Decisions : Demand Trumps Financial Shocks

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...

Full description

Bibliographic Details
Main Authors: de Nicola, Francesca, Tan, Shawn W.
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
heterogeneous firms
export margins
credit constraints
financial shocks
Online Access:http://documents.worldbank.org/curated/en/360281485353684824/Firms-export-decisions-demand-trumps-financial-shocks
http://hdl.handle.net/10986/25961
id okr-10986-25961
recordtype oai_dc
spelling okr-10986-259612021-06-08T14:42:47Z Firms' Export Decisions : Demand Trumps Financial Shocks de Nicola, Francesca Tan, Shawn W. heterogeneous firms export margins credit constraints 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 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. 2017-01-30T20:56:29Z 2017-01-30T20:56:29Z 2017-01 Working Paper http://documents.worldbank.org/curated/en/360281485353684824/Firms-export-decisions-demand-trumps-financial-shocks http://hdl.handle.net/10986/25961 English en_US Policy Research Working Paper;No. 7953 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Central Asia Eastern Europe
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic heterogeneous firms
export margins
credit constraints
financial shocks
spellingShingle heterogeneous firms
export margins
credit constraints
financial shocks
de Nicola, Francesca
Tan, Shawn W.
Firms' Export Decisions : Demand Trumps Financial Shocks
geographic_facet Europe and Central Asia
Central Asia
Eastern Europe
relation Policy Research Working Paper;No. 7953
description 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.
format Working Paper
author de Nicola, Francesca
Tan, Shawn W.
author_facet de Nicola, Francesca
Tan, Shawn W.
author_sort de Nicola, Francesca
title Firms' Export Decisions : Demand Trumps Financial Shocks
title_short Firms' Export Decisions : Demand Trumps Financial Shocks
title_full Firms' Export Decisions : Demand Trumps Financial Shocks
title_fullStr Firms' Export Decisions : Demand Trumps Financial Shocks
title_full_unstemmed Firms' Export Decisions : Demand Trumps Financial Shocks
title_sort firms' export decisions : demand trumps financial shocks
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/360281485353684824/Firms-export-decisions-demand-trumps-financial-shocks
http://hdl.handle.net/10986/25961
_version_ 1764460592999956480

Similar Items