The Impact Of Financing Constraints On Firms’ Export Behavior

The export of China’s enterprises appeared a high growth trend during the pastdecade. However, with the happening of the financing crisis in2008，the enterprises in anextremely vulnerable position. Compared with the enterprises which only sell themerchandise in the home country, the enterprises which serve the foreign consumers facedthe greater operating risk and more operating costs. The later are therefore even keener toreceive financial support from the financial institutions. As a result, they are moresusceptible to the change of financial environment.Based on the new-new trade theory and the results of the foreign and domesticscholars, the author set up an extended model of heterogeneous firm trade which containsfinancing constraints. As a result, with the method of Mathematical Induction, the authorillustrated the micro-mechanism that the financing constraints affect the firm exportbehavior. The model suggests that the financing constraints reduce the firm’s exportprobabilities. Based on this, with using the firm-level panel data of278Chinese listedcompanies from2004to2010, the author used the method of logit estimation to make aconcrete analysis of the effect between financing constraints and export participation.Empirical results suggest that the firms’ export behavior is crimped by the financingconstraints. We also find that the effect of financial heterogeneous on firms’ exportbehavior varies with the firms’ region. For firms in eastern coastal areas, the effect is lesssignificant than the ones in the other areas.According to the findings and the current situation, the author analyzed the financialconstraints on domestic enterprises, especially small and medium enterprises. Then theauthor put forward suggestions and countermeasures in several aspects, constructing andimproving the multi-level capital market, strengthening the management of the enterpriseand the corporation between parties in small and medium enterprise financing.