Does Finance Really Matter for the Participation of SMEs in International Trade? Evidence from 8,080 East Asian Firms
Jinjarak, Yothin; Mutuc, Paulo Jose; Wignaraja, Ganeshan | March 2014
This paper studies factors associated with firm participation in export markets, focusing primarily on firm size and access to credit, based on a survey sample comprising observations of 8,080 small and medium enterprises (SMEs) (with fewer than 100 employees) and non-SME firms in developing East Asian countries across sectors. The main findings suggest the interdependent relationships between export participation, firm size, and access to credit. SMEs participating in export markets tend to gain more access to credit, while potential scale economies (firm sizes) of SMEs are positively associated with participation in export markets. The estimation results also point to the supportive influences of foreign ownership, worker education, and production certification on export participation, and the positive effects of financial certification, managerial experience, and collateral/loan value on access to credit for SMEs.
CitationJinjarak, Yothin; Mutuc, Paulo Jose; Wignaraja, Ganeshan. 2014. Does Finance Really Matter for the Participation of SMEs in International Trade? Evidence from 8,080 East Asian Firms. © Asian Development Bank Institute. http://hdl.handle.net/11540/1232. License: CC BY-NC-ND 3.0 IGO.
Regional Development Finance
Public Financial Management
Finance And Trade
International Monetary Relations
International banks and banking
Central banks and banking
Bills of exchange
Banks and banking
Balance of tradeShow allCollapse