Export Market Exit, Financial Pressure and the Crisis

31 Pages Posted: 29 Aug 2013

See all articles by Holger Görg

Holger Görg

University of Kiel; Kiel Institute for the World Economy

Marina‐Eliza Spaliara

University of Glasgow - Adam Smith Business School

Multiple version iconThere are 2 versions of this paper

Date Written: August 29, 2013

Abstract

Using firm-level data for the UK, we investigate the link between firms’ financial health, borrowing ratio and export exit, paying special attention to the recent financial crisis. Our results show that deterioration in the financial position of firms has increased the hazard of export exit during the crisis. We also find that the sensitivity of export exit to changes in firms’ financial condition is higher during the crisis for those firms which face increases in loan spreads associated with the firm-specific interest rate.

Keywords: financial pressure, firm exit, financial health, exports

JEL Classification: F100, L200, G300

Suggested Citation

Gorg, Holger and Spaliara, Marina-Eliza, Export Market Exit, Financial Pressure and the Crisis (August 29, 2013). CESifo Working Paper Series No. 4363, Available at SSRN: https://ssrn.com/abstract=2317734

Holger Gorg

University of Kiel ( email )

Olshausenstr. 40
D-24118 Kiel, Schleswig-Holstein 24118
Germany

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Marina-Eliza Spaliara (Contact Author)

University of Glasgow - Adam Smith Business School ( email )

Glasgow, Scotland
United Kingdom

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