Exports Versus FDI Revisited: Does Finance Matter?

Arbeitspapier

This paper explores the impact of financial constraints on the internationalization strategies of firms. It contributes to the literature by focusing on three aspects: First, the paper studies the impact of financial constraints on exporting relative to FDI. Consistent with theory, the empirical results confirm that the impact of financial constraints is stronger for FDI than for exporting. Second, the paper analyzes the extensive and the intensive margins and finds that financial frictions matter for both. Third, the paper explores the impact on manufacturing as compared to service industries and shows that firms in service industries are affected more than firms in manufacturing. The paper also identifies a threshold effect: Financial constraints do not matter for small firms whose productivity seems to be too low to consider international expansions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB/TR 15 Discussion Paper ; No. 340

Classification and Topics

• Classification: Wirtschaft
• Subject: Multinational firms ; exports versus FDI ; financial constraints ; Multinationales Unternehmen ; Export ; Auslandsinvestition ; Liquiditätsbeschränkung ; Finanzkrise ; Schätzung ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Buch, Claudia M. ; Kesternich, Iris ; Lipponer, Alexander ; Schnitzer, Monika
• Event: Veröffentlichung
• (who): Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
• (where): München
• (when): 2010

Further information

• DOI: doi:10.5282/ubm/epub.13214
• Handle: http://hdl.handle.net/10419/93849
• URN: urn:nbn:de:bvb:19-epub-13214-8
• Last update: 10.03.2025, 11:43 AM CET