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In this paper the authors assess the importance of internal financial resources related to the sunken entry costs, which characterize a firm's export activity. They propose a new methodology to identify a priori constrained firms, exploiting a rich data-set on firms' assets and liabilities. They provide evidence that the entry probability is affected by the level of cash stock for the constrained firms: an increase of 10% in the cash stock of constrained firms raise by an additional 0.17% the entry probability of rationed firms compared to unconstrained firms. Differently, the expansion in new markets (positive variations in the extensive margin) is associated to higher level of liquidity for all firms.
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