Working Paper

Access to Finance and Exporting Behavior in Transition Countries

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We analyze the link between firms’ access to finance and their decisions to enter
and exit the export market. We employ the Business Environment and Enterprise
Performance Survey (BEEPS) conducted in 2005 and 2008-2009 to 28 countries in
Eastern Europe and Central Asia. We find that more productive, foreign owned
and older firms are more likely to start exporting, while larger and more productive
firms are less likely to exit the export market. With respect to ex-ante firm
characteristics, our results confirm that larger and more productive, as well as
foreign-owned, firms self-select into exporting. By contrast, there is no relationship
between the decision of firms to enter or exit export markets and their access
to finance. This may suggest that internal finance plays a greater role in Eastern
European and CIS countries than in developed countries.


Alex Bernard
Augusto Stabilito
Julian Yoo


Publication Date
JEL Classification
F14, G32, L25