•  
  •  
 
Jurnal Kebijakan Ekonomi

Abstract

The study aims to investigate the relationship between leverage on firms' opportunities to participate in export markets at the levels of aggregate sectors and subsectors of manufacturing of Indonesia by using Industry Survey data published by Badan Pusat Statistik (BPS) for the period 2007 - 2015. The results of logistic estimation at the sectoral aggregate level indicate that the higher a firm has the financial capacity to meet obligations or that the company is not burdened by debt arising from the use of leverage, the firms are not financially constrained and have greater opportunity for firms to participate in the export market. In addition, at the manufacturing subsector level, opportunities for firms to enter the export market are different due to the heterogeneity on firms' characteristics from respective subsectors.

Keywords: Export Participation, Leverage, Manufacturing subsectors, Indonesia

Bahasa Abstract

Penelitian ini bertujuan untuk menyelidiki hubungan antara leverage pada peluang perusahaan untuk berpartisipasi dalam pasar ekspor di tingkat sektor agregat dan manufaktur subsektor Indonesia dengan menggunakan data Survei Industri yang diterbitkan oleh Badan Pusat Statistik (BPS) untuk periode 2007-2015. Hasil estimasi logistik pada tingkat agregat sektoral menunjukkan bahwa semakin tinggi suatu perusahaan memiliki kemampuan keuangan untuk memenuhi kewajiban atau perusahaan tidak terbebani oleh beban utang yang berasal dari penggunaan leverage, perusahaan tersebut tidak terkendala secara finansial dan semakin besar peluang bagi perusahaan untuk berpartisipasi dalam pasar ekspor. Selain itu, pada tingkat subsektor manufaktur, peluang bagi perusahaan untuk memasuki pasar ekspor berbeda karena heterogenitas karakteristik dari subsektor terkait.

Kata kunci: Partisipasi Ekspor, Leverage, Industri Manufaktur, Indonesia

References

Ahn, J. & McQuid, A.F (2017), Capacity constrained exporters: identifying increasing marginal cost. Economic Inquiry. Vol.55, No.3, 1175-1191.

Akarim, Y. D. (2013). The impact of financial factors on export decisions: the evidence from Turkey, Economic Modelling, 35, 305–308.

Amiti, M. & Konings, J. (2007). Trade liberalization, intermediate Inputs, and productivity: evidence from Indonesia. American Economic Review, 97 (5): 1611-1638.

Arndt, C., C. M. Buch & A. Mattes. (2012). Disentangling barriers to internationalization, Canadian Journal of Economics, 45, 41–63.

Badan Pusat Statistik. (2007-2015). Survei Tahunan Perusahaan Industri Manufaktur.

Baldwin, R., & Krugman, P. (1989). Persistent trade effects of large exchange rate shocks, the Quarterly Journal of Economics, 104, (4), 635-654.

Bellone, F., et al. (2010). Financial constraints and firm export behaviour. The World Economy. 33 (3), 347–373.

Berman, N. & Hericourt, J. (2010). Financial factor and the margins of trade: Evidence from cross-country firm-level data. Journal of Development Economics, 93, 206-217.

Bernini, M., S. Guillou & F. Bellone. (2013). Firms’ leverage and export quality: evidence from France, GREDEG Working Paper, No. 2013–29.

Blalock, G & Gertler, P.J. (2004). Learning from exporting revisited in a less a developed setting. Journal of Development Economics, 75, 397– 416.

Blalock, G., Garrick & Roy, Sonali. (2007). A firm-level examination of the exports puzzle: why East Asian exports didn't increase after the 1997-1998 financial frisis. The World Economy, Vol. 30, No. 1, pp. 39-59.

Brancati R, Marrocu E, Romagnoli M, & Usai S. (2018). Innovation activities and learning processes in the crisis: evidence from Italian export in manufacturing and services. Ind Corp Chang 27(1):107–130.

Brakman, S., et.al. (2019). Firm heterogeneity and exports in the Netherlands: identifying export potential beyond firm productivity. The Journal of International Trade and Economic Development.

Chaney, T. (2005). Liquidity constrained exporters. Mimeograph, Massachusetts Institute of Technology.

Cheung, Yin-Wong & Sengupta, Rajeswari. (2012). Impact of exchange rate movements on exports: an analysis of Indian non-financial sector firms. MPRA Paper 43118.

Choi, B. (2018). Financial development, endogenous dependence on external financing, and trade. Economica.

Cole, M. A., R. J. R. Elliott & S. Virakul. (2010). Exporting and Financial Health: a Developing Country Perspective. Department of Economics, University of Birmingham, Mimeo.

de Matteis P, Pietrovito & F, Pozzolo AF. (2016). Determinants of exports: firm heterogeneity and local context. Banca d’Italia Occasional Papers, No. 352, September.

Egger, P. & M. Kesina. (2013). Financial constraints and exports: evidence from Chinese firms, CESifo Economic Studies, 59, 676–706.

Eisenlohr, T. S. (2013). Towards a theory of trade finance. Journal of International Economics, 91, 96-112.

Fazzari, S.M, et al. (1988). Financing constraints and corporate investment. Brookings Papers on Economic Activity, Vol. 1988, No. 1, 141-206.

Gorg, H. & M.-E. Spaliara. (2013). Export market exit, financial pressure and the crisis,’ Kiel Institute for the World Economy, Kiel Working Papers No. 1859, August.

Guariglia, A. (1999). The effects of financial constraints on inventory investment: evidence from a panel of UK firms. Economica, 66, 43-62.

Gutiérrez E, & Moral-Benito E. (2019). Trade and credit: revisiting the evidence. Banco de Espana Documentos de Trabajo No. 1901.

Greenaway, D., Guariglia, A. & Kneller, R. (2007). Financial factors and exporting decisions. Journal of International Economics, 73(2):377-395.

Halldin, T. (2012). External finance, collateralizable assets and export market entry. CESIS Electronic Working Paper Series, No. 268.

International Monetary Fund. (2016). Indonesia: Selected Issues. IMF Country Report No.16/82.

International Monetary Fund. (2015). Stress testing corporate balance sheets in emerging economies. IMF Working Paper No. 15/216.

Johnson, W.C. & Johnson, H. (2001). Strategic factors affecting export decisions: the case of Indonesian manufacturers. The 17th Annual IMP Conference, 9-11 September 2001, Norway.

Jusuf, J. (2014). Analisis Kredit untuk Credit (Account) Officer. Jakarta: Gramedia.

Kiendrebeogo, Y. and A. Minea. (2012). Financial factors and manufacturing exports: theory and firm-level evidence from Egypt,’ CERDI, Etudes et Documents, E2012.21.

Kim (KILF), H.-S. (2016). Firms’ leverage and export market participation: Evidence from South Korea. International Economics.

Krugman, P.R., Obstfeld, M. & Melitz, M.J. (2012). International Economics: Theory & Policy, 9th ed. U.S.: Pearson.

Krugman, P. (1979). Increasing returns, monopolistic competition and international trade. Journal of International Economics, 9, 469–479.

Krugman, P. (1980). Scale economies, product differentiation, and the pattern of trade. The American Economic Review, 70 (5), 950–959.

Lancheros, S. & P. Demirel. (2012). ‘Does finance play a role in exporting for service firms?: Evidence from India,’ The World Economy, 35, 44–60.

Li, Z. & M. Yu. (2009). Export, productivity, and credit constraints: a firm-level empirical investigation of China, Discussion Paper Series 098, December, Hitotsubashi University Research Unit for Statistical and Empirical Analysis in Social Schiences (Hi-Stat).

Manole, V. & M. Spatareanu. (2010). Exporting, capital investment and financial constraints, Review of World Economics, 146, 23–37.

McKinsey&Company. (2018). Rising corporate debt: peril or promise? McKinsey&Company Discussion Paper, June 2018.

Muuls, M. (2008). Exporters and credit constraints. A Firm-Level Approach,’ National Bank of Belgium Working Paper Research No. 139, September.

Manova, K. (2013). Credit constraints, heterogeneous firms, and international trade. Review of Economics Studies, 80, 711-744.

Melitz, Marc J. (2003). The impact of intra-industry reallocations and aggregate industry productivity. Econometrica, 71, 1695–1726.

Modigliani, F., & Miller, M.H. (1958). The cost of capital, corporation finance and the theory of investment. American Economic Review, 48 (3), 261-297.

Myers, S. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5 (2), 147–175.

Myers, S. & Majluf, N. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13 (2),187–221.

Nagaraj, P. (2014). Financial constraints and export participation in India. International Economics, 140, 19-35.

Narjoko, Dionisius & Raymond Atje. (2007). Promoting exports: Some lessons from Indonesian manufacturing.’ Asia-Pacific Research and Training Network on Trade Working Paper Series no. 32, February.

Pane, D.D.P. (2019). Firms in International Trade: Evidence from Indonesia. Thesis.

Qi et al. (2018). Credit constraints and firm market entry decision: Firm-level evidence from internationalizing Chinese multinationals. The North American Journal of Economics and Finance, Elsevier, vol. 46(C), pages 272-285.

Ranjan P., & Raychaudhuri J. (2016). The “new-new” trade theory: A review of the literature. In: Roy M., Sinha Roy S. (eds) International Trade and International Finance. Springer, New Delhi.

Roberts, M. & Tybout, J. (1997). The decision to export in Colombia: An empirical model of entry with sunk costs. American Economic Review, 87(4):545-564.

Rodriguez-Pose, Andrés, Vassilis Tselios, Deborah E Winkler & Thomas Farole. (2013). Geography and the determinants of firm exports in Indonesia. World Development 44 (April): 225–40.

Ross, S.A., et al. (2016). Fundamentals of Corporate Finance, Second Edition. New York: McGraw-Hill Education.

Sabri, M., et al. (2018). The role of industrial estate characteristics in the export decision of manufacturing firms in Indonesia. Competition and Cooperation in Economics and Business.

Sartono, A. (2008). Manajemen keuangan teori, dan aplikasi. Yogyakarta: BPFE Yogyakarta.

Sjöholm, F. (2003). Which Indonesian firms export? The importance of foreign networks. Papers in Regional Science, 82(3): 333–50.

Stiebale, J. (2011). Do financial constraints matter for foreign market entry?: a firm-level examination, The World Economy, 34, 123–153.

Wooldridge, J.M. (2013). Introductory Econometrics: A Modern Approach, Fifth Edition. South-Western, Cengage Learning.

Download

Share

COinS