Banks' support for the development of internationalization in Brazil: a perspective from Brazilian export companies

Mara Mataveli,Alfonso J Gil,Juan Carlos Ayala

doi:10.1108/ejms-05-2021-0046

Mara Mataveli, Alfonso J Gil + Show 1 more

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https://doi.org/10.1108/ejms-05-2021-0046

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Abstract

PurposeBanks play a crucial role in the sustainable development of exports as they finance much of the trade. Additionally, in Brazil's case, banks provide exporting companies with advisory and training services, which facilitate the internationalization process. This work aims to analyze the role of public and private banks in the export process of companies in Brazil.Design/methodology/approachInterviews are conducted with a sample of 318 Brazilian exporting companies. Two research questions are posed: What type of export services do companies use from public and private banks in Brazil? Is exporting companies' access to credit, as a type of banking service, related to their size or export experience? A descriptive study of the functions of public and private banks in helping Brazilian exports is presented. Hypotheses are proposed regarding companies' access to credit and its relationship with their size and export experience.FindingsIt is found that public and private banks in Brazil provide exporting companies with banking services, other services related to technical aspects, and export consulting. There are significant differences in access to credit in both public and private banks, depending on the exporting company's size.Originality/valueThis work contributes to the internationalization literature on the role of banks in supporting exports in an emerging country like Brazil.

Highlights

In Brazil, public and private banks play an essential role in companies’ entry into international trade, especially by directing credit toward exports (Mettenheim, 2010) as well as coordinating and financing investment projects abroad (Araujo and Cintra, 2011)
86.8% of Brazilian exporting companies request help from customs agents in the case of exports, and 52.2% of exporting companies use their bank to solve their export problems. This percentage is followed by 49.4% of companies indicating the use of a private consultancy, 34.7% making use of the MDIC (2014) Website, and 22.0% reporting the use of the Apex-Brasil website, provided by the Brazilian Trade and Investment Promotion Agency, a governmental organization that promotes Brazilian products and services abroad and attracts foreign direct investment (FDI) to strategic sectors of the Brazilian economy; lastly, 11.0% used the MRE website (Ministry of Foreign Affairs of Brazil)
In this ANOVA, the company is taken as an independent variable and the use of credit granted by public banking and private banking is the dependent variable

Summary

Introduction

In Brazil, public and private banks play an essential role in companies’ entry into international trade, especially by directing credit toward exports (Mettenheim, 2010) as well as coordinating and financing investment projects abroad (Araujo and Cintra, 2011). In Brazil, public and private banks perform another series of functions that are not strictly banking to support companies in the exporting of goods and services (Turguttopbas, 2013). Among these functions, we can highlight training for the employees of exporting companies and the provision of support in technical aspects, using the banks’ expert knowledge in the export areas, among other types of aid. The full terms of this licence may be seen at http:// creativecommons.org/licences/by/4.0/legalcode

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