CEU Electronic Theses and Dissertations, 2015
| Author | Ritter, Kinga |
|---|---|
| Title | Financial Constraints and Export Decision - Firm-level evidence |
| Summary | In my thesis I study the relationship between financial constraints of Hungarian companies and their export decisions between 1998 and 2004. I test the effect of two different financial variables, liquidity and leverage, which measure credit constraints for a company. The question is studied in a heterogeneous firm trade framework á la Melitz (2003), where the importance of constraints originates in the assumption that sufficient liquidity is also necessary to cover the fixed costs related to export. In the analysis I focus on medium-sized companies for which financial constraints might be binding. I carry out cross-section and pooled estimations on a panel dataset containing balance sheet information and find that the main determinant in export entry was productivity, size and employment during the studied period. Studying the change in financial variables for export beginners I show that less liquid and more leveraged firms are more likely to become exporters. |
| Supervisor | Gábor Békés |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2015/ritter_kinga.pdf |
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