Scandinavian Working Papers in Economics

Knut Wicksell Working Paper Series,
Lund University, Knut Wicksell Centre for Financial Studies

No 2013/12: Financial Development and Sustainable Exports: Evidence from Firm-Product Data

Melise Jaud (), Madina Kukenova () and Martin Strieborny ()

Abstract: We combine a novel measure of export-related financial needs at the product level with a unique database of firm-product export data from five developing countries. Using the tools of survival analysis and controlling for firm and products fixed effects, we then examine the impact of financial development on the long-term trade. Finance matters for sustainable export performance, as goods with higher export-related financial needs disproportionately benefit from better financial development. Our results complement existing literature on finance and trade, which has relied on production-based measures of financial dependence at the industry or firm level.

Keywords: Finance and trade; export survival; agri-food trade; SPS regulation

JEL-codes: F10; G10; O16

32 pages, June 19, 2013

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