Kiel Working Papers, Kiel Institute for World Economics
No 1848:
World Market Access of Emerging-Market Firms: the Role of Foreign Ownership and Access to External Finance
Horst Raff and Natalia Trofimenko
Abstract: This paper uses micro-data from the World Bank Investment
Climate Surveys 2002-2006 to investigate how foreign ownership and access
to external finance affect the likelihood of manufacturers in emerging
markets to export and/or import. Applying propensity score matching to
control for differences across firms in terms of labor productivity, size,
etc., we find that foreign ownership and access to external finance are
statistically significant determinants of the likelihood that a firm will
export or import. Foreign ownership has a large positive impact on the
likelihood to engage in direct trade but a negative effect on the
likelihood to trade through intermediaries; the effects vary across upper
and lower middle income countries. Access to external finance has a modest
but positive effect on the likelihood to engage in any of the modes of
connecting with foreign customers or suppliers
Keywords: international trade, foreign ownership, financing, developing countries, intermediation, multinational enterprise; (follow links to similar papers)
JEL-Codes: F12,; F14,; F23,; O19; (follow links to similar papers)
47 pages, June 2013
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
KWP%201848%20June%202013.pdf 
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom
