Financial Health and the Intensive Margin of Trade

25 Pages Posted: 12 Sep 2014 Last revised: 11 Dec 2016

See all articles by Deniz Baglan

Deniz Baglan

Howard University

Hakan Yilmazkuday

Florida International University (FIU) - Department of Economics

Date Written: December 10, 2016

Abstract

Using data on 2380 firms from nine emerging countries, this paper shows that there is a positive and significant relationship between financial health and the intensive margin of trade. The magnitude of this positive relationship is shown to depend on several firm characteristics, where the effects of financial health on firm-level exports are larger for firms with higher levels of export, bigger size (measured by assets), higher productivity (measured by value added per worker), and moderate levels of financial health (measured by cash flow over total assets). The results are robust to the consideration of foreign ownership and country characteristics as well as industry and time fixed effects.

Keywords: Financial Health; Intensive Margin of Trade; Threshold Analysis; Emerging Markets

JEL Classification: D24, F10, F14

Suggested Citation

Baglan, Deniz and Yilmazkuday, Hakan, Financial Health and the Intensive Margin of Trade (December 10, 2016). Emerging Markets Finance and Trade, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2494343 or http://dx.doi.org/10.2139/ssrn.2494343

Deniz Baglan

Howard University ( email )

2400 Sixth Street, NW
Washington, DC 20059
United States

Hakan Yilmazkuday (Contact Author)

Florida International University (FIU) - Department of Economics ( email )

11200 SW 8th Street
Miami, FL 33199
United States

HOME PAGE: http://faculty.fiu.edu/~hyilmazk/

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