ICT, access to finance and firm exports: A cross-country study

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Abstract

The present study tries to empirically evaluate how information and communication technology (ICT) and access to finance separately and jointly affect the firm export decision. The study uses data from the World Bank Enterprise Survey for two different waves. Empirical results based on the probit model suggest that ICT and access to finance plays an instrumental role in the firm export decision. Although the interaction of ICT and access to finance is insignificant, the indirect effect of ICT on the firm export decision through access to finance still cannot be ruled out as ICT is one of the significant explanatory variables in the simultaneous equation with access to finance as the dependent variable. The direct effect of ICT reduces cost and hence increases the likelihood of export decision. Indirectly, ICT affects export decision through its effect on access to finance and export decision.

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Singh, P., & Maiti, D. (2019). ICT, access to finance and firm exports: A cross-country study. In Digitalisation and Development: Issues for India and Beyond (pp. 161–181). Springer Singapore. https://doi.org/10.1007/978-981-13-9996-1_6

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