Dr. Kwan Yong Lee published in the Southern Economic Journal

Please join us in congratulating Dr. Kwan Yong Lee, Associate Professor and Director of the Master of Science in Applied Economics and Predicative Analytics in the Department of Economics and Finance, recently published in the Southern Economic Journal.

Title: Financial Dependence and Exports: Entrants or Incumbents?

Journal Name: Southern Economic Journal (JQL Tier 3)

URL to the paper: http://doi.org/10.1002/soej.12624

Abstract: Using firm-level customs data from 51 countries at different levels of development, we explore differential impacts of access to finance on incumbent and new exporters. Consistent with the literature, firms in sectors more dependent on external finance have higher exports based in financially more developed countries. This effect, however, occurs entirely through entrants, with no effect found for incumbents. The trade response of entrants works primarily through the extensive margin (number of exporters) rather than the intensive margin (average size). We further find access to external finance affects exporter entry rates while it does not affect exporter exit rates.