TU Darmstadt / ULB / TUprints

Export Decision and Credit Constraints under Institution Obstacles

Phan, Trang Hoai ; Stachuletz, Rainer ; Nguyen, Hai Thi Hong (2022)
Export Decision and Credit Constraints under Institution Obstacles.
In: Sustainability, 2022, 14 (9)
doi: 10.26083/tuprints-00021442
Article, Secondary publication, Publisher's Version

[img] Text
Copyright Information: CC BY 4.0 International - Creative Commons, Attribution.

Download (5MB)
Item Type: Article
Type of entry: Secondary publication
Title: Export Decision and Credit Constraints under Institution Obstacles
Language: English
Date: 30 May 2022
Place of Publication: Darmstadt
Year of primary publication: 2022
Publisher: MDPI
Journal or Publication Title: Sustainability
Volume of the journal: 14
Issue Number: 9
Collation: 27 Seiten
DOI: 10.26083/tuprints-00021442
Corresponding Links:
Origin: Secondary publication via sponsored Golden Open Access

The growing demand for goods and technology increases capital requirements, especially in exporting enterprises. However, many firms have difficulty accessing external capital due to institutional obstacles. This study analyzes two main issues: the influence of institutional obstacles on credit constraints and the relationship between credit constraints and export decisions, adopting firm-level data from 131 countries. The study’s remarkable contribution is to cluster the data into four country groups based on their national income. The typical specification of each group can lead to more precise results, thereby highlighting the role of institutions. More advanced, this study complements the literature’s gap in the relationship between credit constraints and exports by controlling for institutions as interactive variables in the model. This work upgrades assessments to be more accurate, thereby providing more valuable information to policymakers. In addition, credit constraints are measured by both quantitative and qualitative methods. The essential role of firm size is emphasized in further analysis. This study approaches the Probit method. Furthermore, an instrumental variable is used to solve the endogeneity problem. The results found that a weak institution prevents access to finance, especially in middle-income countries. In addition, firms’ access to capital negatively affects exports in all regions. The finding in the group of rich countries is most pronounced.

Status: Publisher's Version
URN: urn:nbn:de:tuda-tuprints-214422
Additional Information:

Keywords: credit constraints; export; institutions; tax rate; political instability; corruption; business licensing and permit; World Bank data 2020; IV-Probit regression

Classification DDC: 300 Social sciences > 330 Economics
Divisions: 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > International Economics
Date Deposited: 30 May 2022 12:08
Last Modified: 14 Nov 2023 19:04
URI: https://tuprints.ulb.tu-darmstadt.de/id/eprint/21442
PPN: 49513418X
Actions (login required)
View Item View Item