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  • The Role of Financial Access and Financial Development in Firm’s Exportability: Empirical Evidence from Asia-Pacific
    Published By: by Durairaj Kumarasamy and Prakash Singh
     Empirical Evidence from Asia-Pacific

    Abstract: This study attempts to examine how access to finance and financial development affects firm’s ability to export in Asia–Pacific countries. Using firm level data from World Bank Enterprises Survey, we found that access to

    finance plays an important role in promoting the firm’s export market entry. In addition, development in financial sector results into a higher likelihood of firm entering into export market. The effect of financial development is more

    prominent in terms of reach of the banking sector. We also found that interplay between access to finance, financial development and location reduces the limiting effect of location on firm’s ability to export. The study suggests that

    improvement in access-to finance and financial development (increase in reach of banking sector), firms operating away from capital or main cities would find export market entry easier. The study supports that strengthening financial

    sector development would encourage firm’s exportability, and also emphasizes the need of access to finance to facilitate the firm’s exporting activities for remotely located places.

     

     

    Keywords: Access to Finance, Exports, Financial Development, International

    Trade,