Financial Development,Credit Constraints And Manufacturing Firms' Exports

At present,for most developing countries,including China,the issue of credit constraints has become a major factor restricting the export of enterprises.As a result,enterprises have become more and more difficult to enter the export market.This paper introduces financial development as the third element into the model of credit constraints and firms' export in order to analyze the impact of credit constraints on the export behavior of enterprises from the perspective of financial development.The article expects to provide relevant policy suggestions and theoretical support for developing countries to solve their export financing problems from the perspective of improving the financial environment.Firstly,based on the the domestic and foreign literature review,this paper builds a monopolistic competition model based on the models of Melitz(2003)and Chaney(2005)from the perspective of producers and consumers.The theoretical deduction shows that due to the limited profit commitment,the external funds obtained by enterprises are limited,and the importance of internal funds is prominent.However,in the case of generally low productivity of manufacturing enterprises,the export of enterprises depends on the interaction between financial development and credit constraints,which leads to the conclusion of the model that the marginal diminishing effect of credit constraints on the export of enterprises is greater in economically underdeveloped areas.Secondly,in terms of empirical research,this paper uses data from a questionnaire survey conducted by the World Bank on 61 developing country enterprises from 2012 to 2015 and selects 16277 manufacturing enterprise data covering 12 manufacturing industries,including 11182 non-exporting enterprises,and 5095 exporting enterprises.Through descriptive statistics and typical facts of the data,the results showed that:the distribution of industries in exporting enterprises in developing countries is quite different;export enterprises are more concentrated in labor-intensive manufacturing industries;there is a negative correlation between financing constraints and exports;financial development can alleviate this negative marginal effect;external financing dependence and R&D intensity have a negative effect on the export of enterprises.Thirdly,this article uses the binary Probit model to study the entire sample of developing countries and test the data by classification on the basis of the external financing dependence and R&D intensity.The results of empirical analysis further show that the improvement of financial development in a country can ease the credit constraints and the mitigation effect is greater in economically underdeveloped areas;the external financing-dependent enterprises and R&D-intensive enterprises face more credit constraints;therefore,the reform of the financial system has more significant positive effects on improving the financing environment for such enterprises.Finally,this paper puts forward corresponding policy recommendations from the perspectives of government,industry and enterprises with a view to promoting the growth of China's export trade and providing an effective solution to the economic development of developing countries while realizing the effective allocation of funds.