Revista Egitania Sciencia - Volume 16 | ARTICLE

Title: RELATIONS BETWEEN EXPORTS AND FINANCIAL CONSTRAINTS OF INDUSTRIAL ENTERPRISES OF THE PORTUGUESES TEXTILE SECTOR

Author: Ferreira, Cláudia (claudia_ferreira_sd@hotmail.com), Silva, Armando (armandosilva@eu.ipp.pt)

Publication: Revista Egitania Sciencia - Volume 16

Abstract:
This paper studies the connections between exports and the financial constraints of Portugal’s industrial textile companies in the period of 1996-2003. We intend to determine the financial constraint score experienced by the sampled industries, to assess the extent to which financial constraints are a barrier for the beginning of an exporting activity and verify if the start of exports effectively improves the companies’ financial health. The chosen methodology for measuring the financial restrictions was the creation of a financial score, following the proposal of Musso and Schiavo (2008), and we used regression analysis for hypothesis testing. From our results, we suggest the idea that there is, in fact, self-selection of less financially constrained industries for future export activity and that new exporters show improvements in their financial situation after the beginning of international activity.

Keywords: Financial constraints; Exports, Textile, Regression




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