Access To Finance And Exporting Behavior In Transition Countries

Date Added: Apr 2010
Format: PDF

The authors analyze the link between firms' access to finance and their decisions to enter and exit the export market. They employ the Business Environment and Enterprise Performance Survey (BEEPS) conducted in 2005 and 2008-2009 to 28 countries in Eastern Europe and Central Asia. They find that more productive, foreign owned and older firms are more likely to start exporting, while larger and more productive firms are less likely to exit the export market. With respect to ex-ante firm characteristics, their results confirm that larger and more productive, as well as foreign-owned, firms self-select into exporting.