Access to Finance, Technology Investments and Exporting Decisions of Indian Services Firms

Yang, S., Milner, C., Lancheros Torres, S. and Gunessee, S. 2020. Access to Finance, Technology Investments and Exporting Decisions of Indian Services Firms. Open Economies Review. 31 (5), pp. 1009-1036. https://doi.org/10.1007/s11079-020-09595-2

TitleAccess to Finance, Technology Investments and Exporting Decisions of Indian Services Firms
TypeJournal article
AuthorsYang, S., Milner, C., Lancheros Torres, S. and Gunessee, S.
Abstract

This study provides fresh empirical evidence on the influence of various financing sources on firms’ technology investments and exporting decisions using a panel of firms from the service sector in India during the period 1999–2010. Allowing both activities to be jointly determined, our results show that the source of finance matters for exporting and investing in technology. Moreover, the importance of different types of finance varies across industries in the service sector. Overall, we find that internal funds and non-conventional sources of finance play an important role for exporting and investing in technology in both modern and traditional services. However, funding from conventional financial markets exerts divergent effects across service industries: while traditional service firms use resources from the banking sector to fund their technological investments, firms in the modern service sector rely more on funds raised through equity markets to support their exporting and technological efforts. These results contribute to the academic literature and policy debate on the importance of financial mechanisms to promote firms’ strategic investment decisions.

JournalOpen Economies Review
Journal citation31 (5), pp. 1009-1036
ISSN1573-708X
0923-7992
Year2020
PublisherSpringer
Publisher's version
License
CC BY 4.0
File Access Level
Open (open metadata and files)
Digital Object Identifier (DOI)https://doi.org/10.1007/s11079-020-09595-2
Publication dates
Published online15 Jul 2020
Published in printNov 2020

Related outputs

Regional Industrial Redistribution and Carbon Emissions: A Dynamic Analysis for China
Shen, R, Huang, S and Yang, S. 2023. Regional Industrial Redistribution and Carbon Emissions: A Dynamic Analysis for China. Climate Policy. 23 (3), pp. 300-313. https://doi.org/10.1080/14693062.2022.2161980

Technological Catch-up to the National and Regional Frontier: Firm-level Evidence for India.
Yang, S., Lancheros Torres, S. and Milner, C. 2021. Technological Catch-up to the National and Regional Frontier: Firm-level Evidence for India. Journal of Development Studies . 57 (8), pp. 1303-1320. https://doi.org/10.1080/00220388.2021.1881492

Permalink - https://westminsterresearch.westminster.ac.uk/item/vxx2q/access-to-finance-technology-investments-and-exporting-decisions-of-indian-services-firms


Share this

Usage statistics

84 total views
31 total downloads
These values cover views and downloads from WestminsterResearch and are for the period from September 2nd 2018, when this repository was created.