The Impact of Financial Structure on Export Performance: The Case of Manufacturing Sectors in Turkey

A substantial amount of empirical research has explored the decisive role of var-ious external and internal forces on determining the sector export performance. However, there are a few studies, considering financial structure as a determi-nant of export performance. This paper aims to provide a better understanding of the relationship between a set of financial variables and export performance in Turkey’s 24 manufacturing sectors for the period between 2008 and 2016. According to the panel EGLS results, short-term debt, bank loans, size, interest expenses and return on equity have a positive effect on export intensity in con-trast to the return on asset, current asset ratio and foreign exchange rate. Conse-quently, we find substantial evidence that more short term-debt and bank loans in the capital structure lead to an increase in export performance. Further, firms with larger sizes, higher return on equity tend to present higher export performance.

PDF

___

ABOR J. Y., AGBLOYOR E. K., & KUIPOR, R. (2014). “Bank Finance and Export Activities of Small and Medium Enterprises”, Review of Development Finance, 4(2): 97-103.
BAI, J., & NG, S. (2004). “A Panic Attack on Unit Roots and Cointegration”, Econometrica,72, (4): 1127–1177.
BARTOLI, F., FERRI, G., MURRO, P., & ROTONDI, Z. (2014). “Bank Support and Export: Evidence from Small Italian Firms”, Small Business Economics, 42(2): 245-264.
BELLONE, F., MUSSO, P., NESTA, L., & SCHIAVO, S. (2010). “Financial Constraints and Firm Export Behaviour”, The World Economy, 33(3): 347-373.
BERNARD, A. B., & JENSEN, B. J. (1999),. “Exceptional Exporter Performance: Cause, Effect, or Both?” Journal of International Economics, 47(1): 1-25.
BERMAN, N., & HÉRICOURT, J. (2010). “Financial Factors and The Margins of Trade: Evidence from Cross Country Firm-Level Data”, Journal of Development Economics, 93(2): 206-217.
BIGSTEN, A., & GEBREEYESUS, M. (2009). “Firm Productivity and Exports: Evidence from Ethiopian Manufacturing”, The Journal of Development Studies, 45(1): 1594- 1614.
BONACCORSI, A. (1992). “On the Relationship between Firm Size and Export Intensity”, Journal of International Business Studies, 23: 605-635.
CLERIDES, S. K., LACH, S., & TYBOUT, J. R. (1998). “Is Learning by Exporting Important? Micro-dynamic Evidence from Colombia, Mexico, and Morocco”, The Quarterly Journal of Economics, 113(3): 903-947.
GREENAWAY, D., GUARIGLIA, A., & KNELLER, R. (2007), “Financial factors and export-ing decisions”, Journal of International Economics, 73(2): 377-395.
HELPMAN, E., & KRUGMAN, P. (1985). “Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy, Cambridge, MIT Press.
KIENDREBEOGO, Y., & MİNE, A. (2017). “Financial Factors and Manufacturing Exports: Firm-level Evidence from Egypt”, The Journal of Development Studies, 53(12): 2197- 2213.
LEONIDOU, L. C., KATSIKEAS, C., & SAMIE, S. (2002). “Marketing Strategy Determinants of Export Performance: A Meta-analysis”, Journal of Business Research, 5(1): 51-67.
MAUREL, C. (2008). “Financial Approach to Export Performance in French Wine SMEs”, In4th International Conference of the Academy of Wine Business Research: 1-15.
MELITZ, M. J. (2003). “The impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity”, Econometrica, 71, (6): 1695-1725.
MYERS, S. C., & MAJLUF, N. S. (1984). “Corporate Financing and Investment Decisions When Firms Have Information that Investors do not have”, Journal of financial economics, 13(2): 187-221.
NAKHODA, A. (2018). The impact of Long-Term Secured Loans on Exports at The FirmLevel: The Case Of A Developing Country. The Journal of International Trade & Economic Development, 27(5), 565-584.
NAZAR, M. S., & SALEEM, H. M. N. (2009) “Firm-Level Determinants of Export Performance”, International Business & Economics Research Journal, 8(2): 105-112.
PACHECO, L. (2017). “Financial Structure Effects on Export Intensity and Diversification: The Case of Portuguese Industrial Firms”, International Journal of Globalisation and Small Business, 9, (4): 252-276.
TORLAK, Ö., KULA, V., & ÖZDEMİR, Ş. (2007). “Türk İşletmelerinin İhracat Performansı Belirleyicileri”, İktisadi ve İdari Bilimler Fakültesi Dergisi, 9(1): 1-12.
PESARAN, M. H. (2004), General Diagnostic Tests for Cross Section Dependence in Panels. Working Paper, Trinity College, Cambridge.
WAGNER, J. (1995). “Exports, Firm Size, and Firm Dynamics”, Small Journal Economics, 7, (1): 29-39.
WAGNER, J. (2001). “A Note on the Firm Size—Export Relationship”, Small Journal Economics, 17(4): 29-39.
VERWAAL, E., & DONKERS, B. (2002). “Firm Size and Export Intensity: A Transaction Costs and Resource-Based Perspective”, Journal of International Business Studies, 33(3): 603-613.
ZOU, S., & STAN, S. (1998). “The Determinants of Export Performance: A Review of the Empirical Literature Between 1987 and 1997”, International Marketing Review, 15(5): 333-356.
TCMB, Türkiye Cumhuriyeti Merkez Bankası, “Sektör Bilançoları”, http://www3.tcmb.gov.tr/sektor/2016/menu.php, 28.07.2018.