A1 Journal article (refereed)
Multidimensional financial development, exporter behavior and export diversification (2020)
Nieminen, M. (2020). Multidimensional financial development, exporter behavior and export diversification. Economic Modelling, 93, 1-12. https://doi.org/10.1016/j.econmod.2020.07.021
JYU authors or editors
Publication details
All authors or editors: Nieminen, Mika
Journal or series: Economic Modelling
ISSN: 0264-9993
eISSN: 1873-6122
Publication year: 2020
Volume: 93
Pages range: 1-12
Publisher: Elsevier
Publication country: Netherlands
Publication language: English
DOI: https://doi.org/10.1016/j.econmod.2020.07.021
Publication open access: Not open
Publication channel open access:
Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/73913
Abstract
Financial development shapes export sector performance because exporters need external finance and face credit constraints. Previous empirical research has relied largely on single-country studies. The Exporter Dynamics Database (EDD), which features firm-level exports from over 60 countries, reveals differences in the microstructure of the export sector across countries. In this paper, we first provide new evidence that these differences are related to cross-country variation in financial development and structure. Second, we combine the EDD and multidimensional data on financial development with a global database on export diversification. This study is the first to examine how macrolevel export diversification is determined by the microcharacteristics of the export sector. This approach is novel in the empirical literature on export diversification. According to our cross-country analysis, access to domestic financial services positively contributes to export diversification by increasing the number of small exporters, as financial services ease the credit constraints these exporters face.
Keywords: export; export companies; diversification; national economy; economic development
Free keywords: export diversification; export dynamics; financial development
Contributing organizations
Related projects
- Finanancial sector and Competiviness of a small open economy
- Nieminen, Mika
- OP Group Research Foundation
Ministry reporting: Yes
VIRTA submission year: 2020
JUFO rating: 1