Heterogeneous impacts of finance on firm exports: Evidence from export deregulation in a large developing country
Autor: | Yong Tan, Dong Cheng, Zhongzhong Hu |
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Rok vydání: | 2021 |
Předmět: |
Finance
Economics and Econometrics 050208 finance business.industry 05 social sciences Developing country Difference in differences Accession Deregulation Accounting Capital (economics) 0502 economics and business Political Science and International Relations Economics Survey data collection 050207 economics Distortion (economics) China business |
Zdroj: | The World Economy. 44:3326-3350 |
ISSN: | 1467-9701 0378-5920 |
DOI: | 10.1111/twec.13107 |
Popis: | This paper investigates the heterogeneous effects of finance on firm exports through the lens of differential exporting modes. China's WTO accession leads to an export deregulation, which empowers private domestic firms with low registered capital to export directly. This quasi-natural experiment encourages firms switching from indirect to direct exporting, and thus providing an ideal setting to explore the heterogeneous effects of finance on exports for switchers and non-switchers. Applying the difference-in-differences(DID) approach to a comprehensive survey data on Chinese manufacturing firms, we find that finace improves exports more for firms switching from indirect to direct exporting, relative to continuous indirect exporters. Moreover, we show that the heterogeneous effects of finance on exports of switchers and non-switchers are more pronounced in the post-WTO accession period. The time-varying heterogeneous impacts suggest an economic loss causes by the export distortion before China's WTO accession because it prevents productive but financially constrained private domestic firms from direct exporting. |
Databáze: | OpenAIRE |
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