Bank Support and Export: Evidence from Small Italian Firms

SERIES Working Paper No. 42

24 Pages Posted: 29 Jul 2012 Last revised: 6 Jan 2014

See all articles by Francesca Bartoli

Francesca Bartoli

Assolombarda

Giovanni Ferri

LUMSA University

Pierluigi Murro

LUISS Guido Carli University - Department of Business and Management

Zeno Rotondi

UNICREDIT; LUISS Guido Carli University

Date Written: July 1, 2012

Abstract

The ability of a country and its businesses to grow is tightly related to the possibility of exporting and penetrating into foreign markets. The aim of this paper is to study whether bank support can help small businesses (SBs) exporting at the extensive as well as the intensive margin. We address this issue by using a large database on Italian small firms based on a specific designed survey. We provide an empirical analysis of the role of bank support in affecting the firms’ export decisions. Our results show that among the exporting SBs those using bank services to support their exports have a higher probability of being better placed in both intensive and extensive margin. More importantly, these positive impacts on export are statistically significant only when the main bank of the firm is an internationalized bank. These results have relevant policy implications as well as consequences for the business models of internationalized banks.

Keywords: Small business finance, Margins of export, Bank-firm relationships, External Finance

JEL Classification: F10, G20

Suggested Citation

Bartoli, Francesca and Ferri, Giovanni and Murro, Pierluigi and Rotondi, Zeno, Bank Support and Export: Evidence from Small Italian Firms (July 1, 2012). SERIES Working Paper No. 42. Available at SSRN: https://ssrn.com/abstract=2118542 or http://dx.doi.org/10.2139/ssrn.2118542

Francesca Bartoli

Assolombarda ( email )

via Pantano 9
Milano, Milano 20122
Italy

Giovanni Ferri

LUMSA University ( email )

Via della Traspontina
Roma, Rome 00192
Italy

HOME PAGE: http://www.lumsa.it/giovanni-ferri

Pierluigi Murro (Contact Author)

LUISS Guido Carli University - Department of Business and Management ( email )

Via Salvini, 3
Rome, 00198
Italy

Zeno Rotondi

UNICREDIT ( email )

VIA SPECCHI 16
ROME, 00186
Italy

HOME PAGE: http://docenti.luiss.it/rotondi

LUISS Guido Carli University ( email )

Via O. Tommasini 1
Rome, Roma 00100
Italy

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