Firms' Pattern of Trade and Access to Finance

LICOS Discussion Paper No. 278

23 Pages Posted: 20 Mar 2011

See all articles by Jože P. Damijan

Jože P. Damijan

University of Ljubljana, Slovenia - Department of International Economics

Črt Kostevc

University of Ljubljana - Faculty of Economics

Date Written: 2011

Abstract

This paper summarizes recent advances in the empirical research on firms’ learning from trade participation and the role of finance in both starting to trade, surviving in export markets as well as expanding along the intensive and extensive trade margins. It highlights the increased importance of imports, which impacts at firms’ performance primarily through relaxed technological constraints by increasing firms’ scope of inputs and by lowering their input price index. In addition, imports are shown to boost firms’ innovation and introduction of new products, which facilitates firms’ decisions to start exporting. Another important aspect that has been highlighted is the essential role of finance in furthering firms’ survival and expansion in export markets.

Keywords: Exports, learning-by-exports, export expansion, financial constraints, credit crunch

JEL Classification: D24 , F12, F14

Suggested Citation

Damijan, Joze P. and Kostevc, Crt, Firms' Pattern of Trade and Access to Finance (2011). LICOS Discussion Paper No. 278. Available at SSRN: https://ssrn.com/abstract=1786343 or http://dx.doi.org/10.2139/ssrn.1786343

Joze P. Damijan (Contact Author)

University of Ljubljana, Slovenia - Department of International Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia
+386 61 189 24 00 (Phone)
+386 61 189 26 98 (Fax)

Crt Kostevc

University of Ljubljana - Faculty of Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

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