Abstract: Financing constraint is an important factor for restricting export, especially in China with imperfect financial market. This phenomenon can’t explain the booming development of international trade in China. This paper establishes a heterogeneous enterprise model under financing constraint and finds that domestic savings, bank credit, trade credit and transnational enterprises help enterprises get funds for export, and trade credit improves bank trade. We also have done empirical tests using data of more than 40 thousand Chinese enterprises from 2004 to 2007. It is found that the above financial ways not only improve firms to participate in export, but also improve export strength and export scale. Meanwhile, the effects of trade credit on bank credit make firms that having credit trades are better than firms without trade credit in export participation, export scale and export strength. This paper provides not only a comprehensive point of view in understanding export financing in China, but also the theory basis and empirical support in understanding Chinese international trade miracle and formulating related international trade policies.
Keywords: Financial Constraint, Financing Channels, Export, Heckman Section Model
source:Finance & Trade Economics ,No6,2013