Hostname: page-component-78c5997874-4rdpn Total loading time: 0 Render date: 2024-11-03T05:50:56.599Z Has data issue: false hasContentIssue false
  • English
  • Français

Exporters in the Financial Crisis

Published online by Cambridge University Press:  01 January 2020

Holger Görg  and
Marina-Eliza Spaliara
Holger Görg
Affiliation:
Kiel Institute for the World Economy and Christian-Albrechts-University of Kiel
Marina-Eliza Spaliara*
Affiliation:
University of Glasgow and Kiel Institute for the World Economy
*
E-mail: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

Using a large panel of UK manufacturing firms over the period 2000–9, we consider how firms responded during the most recent financial crisis, estimating models for export market participation decisions and firm growth and survival. The results indicate that financial variables are highly important in predicting export market entry, especially in the midst of the global financial crisis. With respect to firm growth and survival, we find that starters and continuous exporters are more likely to perform well in and out of the crisis than non-exporters.

Keywords

exportsfinancial crisisfinancial healthF1L2G3
Type
Research Articles
Information
National Institute Economic Review , Volume 228 , May 2014 , pp. R49 - R57
Copyright
Copyright © 2014 National Institute of Economic and Social Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

We would like to thank Rebecca Riley and two anonymous referees for helpful comments and suggestions on an earlier draft of the paper.

References

Alfaro, L. and Chen, M. (2012), ‘Surviving the global financial crisis: foreign ownership and establishment performance’, American Economic Journal: Economic Policy, 4, pp. 30–55.Google Scholar
Amiti, M. and Weinstein, D. (2011), ‘Exports and financial shocks’, Quarterly Journal of Economics, 126, pp. 1841–77.CrossRefGoogle Scholar
Askenazy, P.Caldera, A.Gaulier, G. and Irac, D. (2011), ‘Financial constraints and foreign market entries or exits: firm level evidence from France’, Working Paper 328, Banque de France.CrossRefGoogle Scholar
Baldwin, R. and Evenett, S. (2009), ‘The collapse of global trade, murky protectionism, and the crisis. Recommendations for the G20’, Working paper, Centre for Economic Policy Research.Google Scholar
Bell, V. and Young, G. (2010), ‘Understanding the weakness of bank lending’, Quarterly Bulletin Q4, Bank of England.Google Scholar
Bellone, F.Musso, P.Nesta, L. and Schiavo, S. (2010), ‘Financial constraints and firm export behaviour’, The World Economy, 33, pp. 347–73.CrossRefGoogle Scholar
Bernanke, B.Gertler, M. and Gilchrist, S. (1996), ‘The financial accelerator and the flight to quality’, Review of Economics and Statistics, 78, pp. 1–15.CrossRefGoogle Scholar
Bernard, A.Jensen, B.Redding, S. and Schott, P. (2007), ‘Firms in international trade’, Journal of Economic Perspectives, 21, pp. 105–30.CrossRefGoogle Scholar
Bricongne, J.Fontagn, L.Gaulier, G.Taglioni, D. and Vicard, V. (2012), ‘Firms and the global crisis: French exports in the turmoil’, Journal of International Economics, 87, pp. 134–46.CrossRefGoogle Scholar
Chodorow-Reich, G. (2012), ‘The employment effects of credit market disruptions: firm-level evidence from the 2008–09 financial crisis’, Mimeo, UC Berkeley.CrossRefGoogle Scholar
Chor, D. and Manova, K. (2012), ‘On the cliff and back? Credit conditions and international trade during the global financial crisis’, Journal of International Economics, 87, pp. 117–33.CrossRefGoogle Scholar
Engel, D.Procherc, V. and Schmidt, C. (2013), ‘Does firm heterogeneity affect foreign market entry and exit symmetrically? Empirical evidence for French firms’, Journal of Economic Behavior and Organization, 18, pp. 381–97.Google Scholar
Fazzari, S.Hubbard, G. and Petersen, B. (1988), ‘Financing constraints and corporate investment’, Brookings Papers on Economic Activity, 2, pp. 141–95.Google Scholar
Gertler, M. and Gilchrist, S. (1994), ‘Monetary policy, business cycles, and the behavior of small manufacturing firms’, Quarterly Journal of Economics, 109, pp. 309–40.CrossRefGoogle Scholar
Girma, S.Görg, H. and Strobl, E. (2004), ‘Exports, international investment, and plant performance: evidence from a non-parametric test’, Economics Letters, 83, pp. 317–24.CrossRefGoogle Scholar
Godart, O.Görg, H. and Hanley, A. (2012), ‘Surviving the crisis: foreign multinationals vs domestic firms’, The World Economy, 35, pp. 1305–21.CrossRefGoogle Scholar
Görg, H. and Spaliara, M.-E. (2013), ‘Export market exit, financial pressure and the crisis’, Working Paper 9599, CEPR.Google Scholar
Görg, H. and Spaliara, M.-E. (2014a), ‘Exporters in the financial crisis’, Mimeo, University of Glasgow.CrossRefGoogle Scholar
Görg, H. and Spaliara, M.-E. (2014b), ‘Financial health, exports, and firm survival: evidence from UK and French firms’, Economica (forthcoming).CrossRefGoogle Scholar
Greenaway, D.Guariglia, A. and Kneller, R. (2007), ‘Financial factors and exporting’, Journal of International Economics, 73, pp. 377–95.CrossRefGoogle Scholar
Hadlock, C. and Pierce, J. (2010), ‘New evidence on measuring financial constraints: moving beyond the KZ index’, Review of Financial Studies, 23, pp. 1909–40.CrossRefGoogle Scholar
Ivashina, V. and Scharfstein, D. (2010), ‘Bank lending during the financial crisis of 2008’, Journal of Financial Economics, 97, pp. 319–38.CrossRefGoogle Scholar
Iyer, R.Da-Rocha-Lopes, S.Peydr, J. and Schoar, A. (2014), ‘Interbank liquidity crunch and the firm credit crunch: evidence from the 2007–2009 crisis’, Review of Financial Studies, 27, pp. 347–72.CrossRefGoogle Scholar
Minetti, R. and Zhu, S. (2011), ‘Credit constraints and firm export: microeconomic evidence from Italy’, Journal of International Economics, 83, pp. 109–25.CrossRefGoogle Scholar
Mizen, P. and Tsoukas, S. (2012), ‘The response of the external finance premium in Asian corporate bond markets to financial characteristics, financial constraints and two financial crises’, Journal of Banking and Finance, 36, pp. 3048–59.CrossRefGoogle Scholar
Spaliara, M. (2009), ‘Do financial factors affect the capital-labour ratio? Evidence from UK firm-level data’, Journal of Banking and Finance, 33, pp. 1932–47.CrossRefGoogle Scholar
Spaliara, M. (2011), ‘Financial frictions and the K/L ratio in UK manufacturing’, Economics Letters, 112, pp. 23–25.CrossRefGoogle Scholar
The Economist (2013), ‘Innovative new lenders are easing the credit crunch for British firms’, article 8 June.Google Scholar
Tsoukas, S. and Spaliara, M.-E. (2014), ‘Market implied ratings and financing constraints: evidence from US firms’, Journal of Business Finance and Accounting, 41, pp. 242–69.CrossRefGoogle Scholar
Wagner, J. (2007), ‘Exports and productivity: a survey of the evidence from firm-level data’, The World Economy, 30, pp. 60–82.CrossRefGoogle Scholar
WTO (2012), World Trade Technical Report, World Trade Organization.Google Scholar