Abstract

This article investigates the most frequent financial obstacles to firm export and depicts their severity by examining firm perception about them. By using descriptive and multivariate probit model analyses, we find that cost of finance, lender's bias and partial lending are considered as the foremost financial export barriers to Pakistani firms, while firm size, industry, and firm ownership are the most prevailing expounding factors to the perception of obstacles. A significant difference was found to exist between the two firm size categories. After controlling firm size, large firms having state-ownership or foreign-ownership do not seem to perceive financial impediments as a determinant of export.

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