Impact of Type of Export Finance on Firms’ Export Profitability: A Study of Industrial Clusters in Gujarat, India

“Exceeding The Vision: Innovate, Integrate and Motivate” (Eds.) N. Delener, Leonora Fuxman, F. Victor Lu, and Susana Rodrigues, Global Business and Technology Association (GBATA), NY, USA, pp.89 – 96, ISBN: 1-932917-12-8, ISSN: 2471-6006.

8 Pages Posted: 19 Jan 2017

See all articles by Pawan K. Chugan

Pawan K. Chugan

Nirma University - Institute of Management; AIIM - Ahmedabad; SPM - PDPU

Shivangi Singh

Nirma University - Institute of Management

Date Written: October 16, 2016

Abstract

Financing resources play a significant role in escalating export ventures particularly of MSMEs (Micro, Small and Medium Enterprises) which face a stiff competition from the larger firms. Finance is essential not only for successful operation of current activities of the firm but also aids in expanding those activities to grow the firms’ business. There are several financing resources available at a firm’s disposal viz. its own retained profits, commercial loans from banks, loans from specialised development institutions and funding agencies, etc. This study attempts to analyse the impact of specific financing resources used by MSME exporters on their export profitability. It is concluded that the funds sourced from commercial banks had a significant impact on firm’s export performance followed by profits ploughed back into export operations. The effect of development finance sources from institutions such as EXIM bank, SIDBI, IFCI, etc., was, however, not very significant.

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Keywords: Financing Resources, Export Profitability, Export Finance; Micro, Small and Medium Enterprises

JEL Classification: F1, F10, F13, F14, F19, F2, F21, F23, F3, F30, F4, F40, F49, G15, G32

Suggested Citation

Chugan, Pawan Kumar and Singh, Shivangi, Impact of Type of Export Finance on Firms’ Export Profitability: A Study of Industrial Clusters in Gujarat, India (October 16, 2016). “Exceeding The Vision: Innovate, Integrate and Motivate” (Eds.) N. Delener, Leonora Fuxman, F. Victor Lu, and Susana Rodrigues, Global Business and Technology Association (GBATA), NY, USA, pp.89 – 96, ISBN: 1-932917-12-8, ISSN: 2471-6006., Available at SSRN: https://ssrn.com/abstract=2898995

Pawan Kumar Chugan (Contact Author)

Nirma University - Institute of Management ( email )

Sarkhej Gandhinagar Highway
Ahmedabad, GUJARAT 382481
India

HOME PAGE: http://pawanchugan.wordpress.com

AIIM - Ahmedabad ( email )

Adani Shantigram, Vaishno Devi Circle
S.G. Highway
Ahmedabad, Gujarat 382421
India

HOME PAGE: http://pawanchugan.wordpress.com/

SPM - PDPU ( email )

Raisan
Gandhinagar, Gujarat 382007
India

HOME PAGE: http://pawanchugan.wordpress.com/

Shivangi Singh

Nirma University - Institute of Management ( email )

Sarkhej-Gandhinagar Highway
Via Gota
Ahmedabad, Gujarat 382481
India

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