The present study examines the drivers of Italian exports via an export equation with regional and time-varying impacts of local financial development. To this purpose, two-way fixed effects regression models with lagged variables and a system Generalized-Methods-of-Moments have been adopted to account for potential endogeneity problems and dynamic trade patterns. The analysis covers the period 2000–2013 and the sub-period 2000–2007. The results show that a mix of factors contributing to lift exports, including financial development, exerts a positive impact on trade flows. In particular, a rise in credit intensity and a reduction in financial risk push export propensity. The results further point to the relevant effect of non-price competitiveness factors, namely R&D and investments, in influencing the export behaviour of the Italian regions. The results hold for both the whole and the pre-crisis period, but the effects are generally stronger during the pre-crisis years.

Non-Price Competitiveness and Financial Drivers of Exports: Evidences from Italian Regions

ALGIERI, Bernardina;Aquino A;MANNARINO, Lidia
2018

Abstract

The present study examines the drivers of Italian exports via an export equation with regional and time-varying impacts of local financial development. To this purpose, two-way fixed effects regression models with lagged variables and a system Generalized-Methods-of-Moments have been adopted to account for potential endogeneity problems and dynamic trade patterns. The analysis covers the period 2000–2013 and the sub-period 2000–2007. The results show that a mix of factors contributing to lift exports, including financial development, exerts a positive impact on trade flows. In particular, a rise in credit intensity and a reduction in financial risk push export propensity. The results further point to the relevant effect of non-price competitiveness factors, namely R&D and investments, in influencing the export behaviour of the Italian regions. The results hold for both the whole and the pre-crisis period, but the effects are generally stronger during the pre-crisis years.
Regional exports; Financial development ; Non-price competitiveness 
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.11770/153396
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