Fatma Bouattour

Financial constraints and export performance: Evidence from Brazilian micro-data

Keywords: F10, F14, G30, L25

, this paper provides …rm-level evidence that …nancial constraints hamper the export performances. Using customs data from Brazil, I show through a probability model, that Large …rms exhibit more probability to have export performances when compared with Small and Medium-sized …rms, and that this advantage tends to decrease in industries with high external funding needs. The sectors' …nancial vulnerability is proxied with two measures borrowed from Rajan and Zingales (1998) and computed for Brazilian industries over the recent period of the 2000s. The results are globally robust to the modi…cation of the proxies of sectoral external …nance dependence, used in the literature. Other tests demonstrate that Brazilian subsidiaries have greater chances to be export performant, and that there is a "regional effect" that makes some Brazilian regions export more than others. This paper also provides an insight of the e¤ects of the global crisis of 2008 on the export patterns.

Introduction and motivation

Even with the growing role of Brazil as a global trader, it is widely recognized that export challenges persist. Over the last decade, the Brazilian economy has witnessed a strong export expansion. Brazilian exports of goods and services have grown 262 percent over the 2000s, sig-ni…cantly more than the average global expansion [START_REF] Canuto | Brazilian Exports: Climbing Down a Competitiveness Cli¤[END_REF]. These performances are however found to be less stunning in comparison with other emerging countries, notably those of the BRICs. Despite the serious steps undertaken by the Brazilian government to the privatization and the growth maintain in the 1990s, Brazilian …rms continue to face constraints which prevent them from export expansion. For instance, the traditional export promotion policies of the 1990s were voted to failure [START_REF] Gusso | Promoçao de comércio exterior: Experiências e aprendizagens, Textos para Discussão[END_REF]. A major barrier for Brazilian PhD Student at the University of Paris-Dauphine and member of DIAL research team, co-directed by the University of Paris-Dauphine and the Institute of Research for Developement-France (IRD). 1 …rms is the persistence of high costs of capital. The Brazilian …nancial system is featured by a lack of maturity and high interest rates. The availability of credit has been even more weakened due to the global economic crisis of 2008. This has led to a clear slowdown of the international trade. The proportion of Brazilian exports in the gross domestic product (GDP) shifted from 16.4 percent in 2004 to 11.2 percent in 2010. The Brazilian exports'diagnostic also shows di¤erences between Brazilian sectors in terms of competitiveness. High-technology sectors are less performant when compared with primary and resourced-based sectors. This can be due to the importance of Brazil's natural resource endowments. An alternative explanation may be related to the di¤erences in the access to credit between di¤erent industries.

Beginning with [START_REF] Rajan | Financial Dependence and Growth[END_REF], the recent literature on the impact of …nancial factors on the real outcomes has stressed that industries'characteristics a¤ect their demand and access to external …nance, which in consequence a¤ect their performances. Despite the existence of rich literature on the e¤ects of …nancial voids on economic growth, there exist only few studies focusing on export performances. Studies on the e¤ects of credit constraints on exports are even more rarer at …rm-level, due to the di¢ culty of obtaining detailed …rm data.

This paper …lls this void and proposes a deep analysis of the importance of …nancial frictions on the export performances, at …rm-level. The analysis focuses on the intensive margin of trade. I pay special attention to the di¤erences between manufacturing industries in the access to credit and the role of …rms' characteristics, as well. Particularly, this work revisits the link between the …rm size and the productivity level and the e¤ects of the size on the …rm's export performance. Given the international context after the global crisis and the Brazilian features, my analysis exploits customs data on the Brazilian exporting …rms engaged in international trade in 2010. The data report the intervals of export values for exporting …rms and unfortunately, the exact export values are not public. I crossed the information provided by the Brazilian customs with data on the industrial belonging of the exporting …rms as well as …rms'characteristics from di¤erent sources, notably, the Brazilian ministry of Finance (Receita federal do Brasil ) and a private database ORBIS. Regarding the …nancial constraints at industry-level, I use two distinct indicators that I computed, in a previous work, for Brazilian publicly traded …rms over the period 2000-2012. These indicators include the External Finance Dependence Index originally constructed by Rajan and Zingales (1998) for US …rms and the level of Asset Tangibility. I build my empirical strategy following the predictions of the model of …rm heterogeneity under credit constraints performed by [START_REF] Manova | Credit Constraints, Heterogeneous Firms and International Trade[END_REF]. Due to the data characteristics, I use two econometric methods that deal with interval dependent variables: Interval regression which is an extension of the Tobit model and the Ordered Probit model. I …nd that large …rms are more likely to have high export performances, compared to small and medium-sized …rms. The results also indicate that …nancial frictions in the …nancing of their …xed and variable costs hamper the export performance. In this paper, the …nancial frictions are mainly driven by the level of reliance on external …nance, in the industry in which an exporting …rm operates. The positive e¤ect of the …rm size on the export performances is found to be less in ‡uential in sectors with higher external capital needs. Other results include the importance of the legal status of the …rm in Brazil, i.e. whether the …rm is a main establishment in Brazil or a subsidiary. I then perform a series of robustness checks where I use proxies of industry's level of …nancial vulnerability borrowed from the literature. These measures include the Rajan and Zingales (1998)'s measure of reliance on external funds, computed for US industries over the 1980s, the update of this measure for the 1990s constructed by [START_REF] Kroszner | Banking Crises, Financial Dependence, and Growth[END_REF], the R&D intensity as well as the share of tangible assets in total assets. The …ndings are consistent with the results with Brazilian indicators. The exception is for the [START_REF] Rajan | Financial Dependence and Growth[END_REF] measure for the 1980s. This can be justi…ed by the di¤erences in the industries'organization and needs, in the US over the 1980s and in Brazil in the recent period.

The remainder of the paper is organized as follows. The next section presents a comprehensive review of literature on the role of …nancial frictions in the performances of real outcomes, mainly related to international trade. I then present more precise literature with a focus on the Brazilian case. Section 4 provides the theoretical background. The paper then describes the data and presents descriptive statistics. The next section develops the empirical strategy. The following sections analyze the results and comment on the robustness checks.

Finally, the paper concludes and o¤ers suggestions about where further data collection and research would be useful.

Financial Factors and Exports: Review of Literature

The past two decades have witnessed an increasing interest in the study of the link between …nancial factors and real outcomes. A number of theoretical and empirical researches have shed the light on the role of …nancial development in the economic growth [START_REF] King | Finance and Growth: Schumpeter Might Be Right[END_REF][START_REF] Rajan | Financial Dependence and Growth[END_REF][START_REF] Bas | The Unequal E¤ects of Financial Development on Firms'Growth in India[END_REF]. A body of literature has also sought evidence on the impact of …nancial development on the exports at aggregate level.

Starting with [START_REF] Kletzer | Credit Markets and Patterns of International Trade[END_REF], a number of studies have con…rmed the …nancial development gives a comparative advantage, when exporting, especially in industries with higher capital needs. Using industry-level data for 36 industries in 56 countries, [START_REF] Beck | Financial Dependence and International Trade[END_REF] shows that countries with higher levels of …nancial development exhibit larger export shares and tend to specialize in industries with higher external …nancing needs. [START_REF] Hur | Finance and Trade: A Cross-Country Empirical Analysis on the Impact of Financial Development and Asset Tangibility on International Trade[END_REF] …nd that well-functioning …nancial systems are determinants of international trade patterns, particularly for industries with larger parts of intangible assets. In line with these …ndings, [START_REF] Svaleryd | Financial Markets, the Pattern of Industrial Specialization and Comparative Advantage: Evidence from OECD Countries[END_REF] con…rm the link between …nancial systems and the patterns of international specialization, for OECD countries. The existent literature usually uses the amount of credit provided by the …nancial system to the private sector (as percentage of GDP) as proxy for …nancial development. This assumes similar access to the external …nance for …rms within a country [START_REF] Minetti | Credit Constraints and Firm Export: Microeconomic Evidence from Italy[END_REF].

Recently, a growing body of literature has been interested in the e¤ects of …nancial constraints on the international trade at …rm-level. The importance of …nancial constraints for exporting companies can be assessed in di¤erent manners. Compared to domestic sellers, exporters face bigger liquidity constraints, as exports need generally a longer time lag between the production and the receipt of revenues. International activities incur also bigger risks.

They are generally risks related to the lack of information on the foreign clients. Moreover, exporting activities require more …xed costs before entering the international market. These costs include the market exploration, the creation of subsidies in the foreign markets, etc. [START_REF] Melitz | The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity[END_REF] takes into account these costs and proposes a model of international trade, in which entering the export market requires the payment of up-front costs that can be seen as an investment. As con…rmed in the literature, the …nancial health of …rms a¤ects their investments [START_REF] Aghion | Volatility and Growth: Credit Constraints and the Composition of Growth[END_REF]. Consequently, their export decisions and performances may be tributary of their …nancial situations. Considering the importance of these arguments, [START_REF] Manova | Credit Constraints, Heterogeneous Firms and International Trade[END_REF] introduces liquidity constraints in a model of heterogeneous …rms, à la Melitz (2003). She assumes that exporters should borrow funds from the …nancial system to export and should present collaterals. The …nancial frictions a¤ect the export participation (extensive margin of trade) and the export performances (intensive margin of trade). The e¤ects are more pronounced for …rms in sectors with higher external …nancing needs, especially in countries with poor …nancial institutions. Chaney (2013) also introduces credit frictions as determinants of exports at …rm-level. He considers that liquidity constraints are linked to the …rm's productivity: more productive …rms have larger pro…ts and then, they are less constrained. Despite these di¤erences, both works have pointed the weight of …rms'characteristics in the span of liquidity constraints they may face. Both authors have thus focused on the demand side of credit constraints. These theoretical contributions to the literature on international trade have been supported by empirical studies. Using data on a panel of UK manufacturing …rms over the period 1993-2003, Greenway et al (2007) con…rm that …rms'…nancial health does matter for exporting decisions. [START_REF] Muûls | Exporters and Credit Constraints. A Firm Level Approach[END_REF] shows that, credit constraints do matter for the exports of the Belgian manufacturing sector. The …ndings demonstrate that the …rms which present higher productivity and less liquidity constraints are more likely to export. Berman and Héricourt (2008) provide evidence that liquidity constraints do a¤ect exports in 9 emerging countries. To proxy the liquidity constraints, they use some variables and ratios from …rms'balance-sheets. Similarly, Bricongne and al (2010) show that during the global crisis, the exports of French …rms in more external-…nance dependent sectors were more a¤ected. Manova and others (2011) use detailed data on the Chinese …rms that have international activities and show at micro-level that …nancial market vulnerability has a negative e¤ect on the total amount of exports and reduces the number of destination markets. Similar results are found in [START_REF] Minetti | Credit Constraints and Firm Export: Microeconomic Evidence from Italy[END_REF]. The authors made a survey to get information on credit constraints and export volumes, in small and medium Italian …rms.

They de…ne two measures that re ‡ect two di¤erent intensities of credit rationing. Their results show that credit rationing reduces the export sales by more than the third. They also study the heterogeneous response of exporting …rms by introducing dummies for …rms and industries' characteristics. Their …ndings con…rm that the e¤ects of credit rationing on the participation to export and the overall sales, di¤er across …rms and sectors. Paravisiani et al (2012) focus on the supply side of credits and studied the e¤ects of bank funding shortages on the export performances of their related …rms. The authors present a model that disentangles the e¤ects of credit supply by banks from the e¤ects of credit demand by …rms, on the export activity. Based on the supply of credits during the crisis of 2008, they consider that the banks with large shares of foreign liabilities in their balance sheets, are more likely to face shortages in providing …rms with credits. They use data on Peruvian banks and …rms and estimate the elasticity of exports to credits. Their results show that a shrink in credit supply by the Peruvian banking system causes a reduction in export volumes but does not a¤ect the extensive margin of trade. The authors also test the heterogeneous response of …rms in di¤erent sectors and of di¤erent export ‡ows, to the changes in the credit supply. Their estimations show a constant elasticity of exports to credit across the di¤erent characteristics of …rms, sectors or export ‡ows. Overall, the literature emphasized the importance of the …nancial development and the heterogeneity of sectors in terms of external …nance dependence, in …rms'access to credit. While the …nancial development refers to the supply side of credit, sectors'characteristics may a¤ect both sides of credits. For instance, industries with higher R&D expenses are more dependent on external …nance which positively a¤ects their demand of credit. At the same time, the …nancial system may perceive it less risky to lend money to …rms in "Growth" sectors [START_REF] Rajan | Financial Dependence and Growth[END_REF] as they exhibit less liquidity constraints, and are less likely to default.

A part from …nancial factors, the literature made evidence about other variables that can be related to the liquidity constraints. Firm size has been considered as a factor that a¤ects …rm's …nancing patterns [START_REF] Hadlock | New evidence on measuring …nancial constraints: Moving beyond KZ index[END_REF]. Demirgüç-Kunt and Maksimovic (1999) …nd that large …rms have more long-term debt as a proportion of their total assets, compared to small …rms, which shows that they have better access to external …nance. Using data on US small …rms in the 1980s, [START_REF] Levenson | Do …rms get the …nancing they want? Measuring credit rationing experienced by small business in the US[END_REF] suggest that credit constrained …rms are smaller, younger and more likely to be owned by their founders. More recently, other studies shed the light on the importance of …rm ownership on its access to external funding. Furthermore, in standard heterogeneous …rms trade models, …rm size is generally considered to be positively correlated with …rms' export performance, since both variables are driven by the productivity (Manova et al, 2011). Although tis relation between …rm size, productivity and exports seems to be con…rmed for US …rms [START_REF] Bernard | Firms in Internatioanl trade[END_REF], one may suggest that …rms may di¤er by a number of dimensions that make the connection between …rm size and productivity level questionable. This paper is an attempt to verify this relation for the Brazilian exporting …rms. There may also be a "regional e¤ect" that makes some regions more constrained than others (Kumar and Francisco, 2005). Within a country, urban cities have more access to banks and …nancial intermediaries. The level of development of the …nancial system networks in a given region positively impacts the supply of credit, and thus, it can be considered as a form of "relaxation" of the credit constraint.

Credit Constraints in International Trade: Brazilian Context

The discussion on …nancial constraints is of special relevance for the Brazilian economy. The …nancial system in Brazil is featured by high interest rates, which are according to [START_REF] Haussman | Growth Diagnostics[END_REF], the reason behind the lack of performance of the Brazilian economy. The high costs of capital imply few pro…table investments and are then considered as a …nancial barrier to growth. Claessens and Sakho (2013) argue however that it has been hard to disentangle the demand side from the supply side sources of the high interest rates. The high cost of capital can be due to the weak …nancial system and the ine¢ ciency in intermediation as it can be the result of the lack of external capital demand from economic actors. While the supply side of credit can be traditionally assessed by analyzing the bank characteristics (Peterssen and Rajan, 1995), the global …nancial crisis of 2008 has led to the emergence of new credit constraints. [START_REF] Alfaro | The Real E¤ects of Capital Controls: Financial Constraints, Exporters, and Firm Investment[END_REF] study the e¤ects of foreign capital restrictions imposed by the Brazilian government after the crisis and …nd that these restrictions negatively a¤ect the availability of external …nance and the investments, in consequence. Regarding the demand side of credit, a number of studies have sought evidence about whether Brazilian …rms are credit constrained or not. Using panel data for brazilian …rms for the period 1986-1997, Terra (2003) …nd that investment decisions are a¤ected by credit constraints and that Brazilian …rms are indeed liquidity constrained. The …ndings show also that these e¤ects are softer for multinational companies. Firm size is found to a¤ect the …nancing constraints for Brazilian …rms. Using a panel of 289 non…nancial …rms for the period 1995-2006, Crisostomo et al (2012) con…rm that credit constraints impede …rms'investments, especially for smaller …rms.

Investments of small …rms are more reliant on internal funds, compared to large …rms. In other words, this suggests that larger …rms are more dependent on external …nance compared to small …rms. This …nding may suggest that large …rms will be more credit constrained in sectors that highly depend on external funds. Looking at the link between the …rm size and the productivity level, trade models à la [START_REF] Melitz | The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity[END_REF] generally consider that there is a positive relationship between the …rm size and the productivity level, which make more productive …rms -and consequently larger …rms-more export performant. This link has to be examined with caution for the case of Latin American Countries (LAC) and particularly for Brazil. In fact, in these countries, governments have spent large amounts to …nance programs to support Small and Medium Enterprises (SME), over the last decades, which may a¤ect the productivity gap and the distribution of resources between SME and large …rms [START_REF] Ibarrarán | SME Policy and Firms'Productivity in Latin America[END_REF]. As a consequence, the relationship between …rm size and productivity for these countries does not seem to be clear. In this paper, I study this question for the Brazilian case based on a theoretical framework à la [START_REF] Melitz | The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity[END_REF], in order to have a clear idea on the characteristics of the export behavior of Brazilian …rms.

The existent literature on the link between credit constraints and investments for Brazilian …rms is guided by the Brazilian context over the two past decades. In Brazil, there have been macroeconomic changes that can a¤ect the access to credit. After a long period of economic underperformances, the 1990s were characterized by a number of reforms for the amelioration of …nancial conditions that were behind the changes in …nancial patterns of Brazilian …rms [START_REF] Studart | Pension funds and the …nancing productive investment: An analysis based on Brazil's recent experience[END_REF]. These reforms include mainly government actions to privatize industries and the banking sector. The banking reforms were about the establishment of universal banks and the privatization of State banks. These reforms resulted in a more ‡exible and sophisticated banking sector, which a¤ects the behaviors at …rm-level [START_REF] Faleiros | Credit scarcity in developing countries: An empirical investigation using brazilian …rm-level data[END_REF]. In addition, the reforms concerned the foreign trade. An important action of Brazilian government towards external liberalization was observed. The combined e¤ect of the signature of WTO agreement in the 1995 and the "Real" plan1 was in favor of trade opening of the country. The role of government has consequently shifted from a monopoly to a regulator. Moreover, as for all the LAC, the Brazilian government has implemented programs aiming at relaxing …nancing constraints which are increasingly targeting SME, through the Brazilian Development Bank (BNDES). Despite these progresses and as presented in the beginning of this paragraph, Brazil still has relatively less developed …nancial system and high interest rates. These factors remain obstacles to the access to external …nancing, which negatively a¤ects …rms'investments.

As exporting activities can be considered as corporate investments [START_REF] Melitz | The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity[END_REF], the export performances are dependent on the …rm's credit constraints. According to the National Confederation of Industry in Brazil, access to …nance is seen as one of the important barriers to exports for Brazilian exporters (see Appendix 1). Consistent with this fact, Araujo and Pianto (2010) argue that the novice exporting culture combined with the lack of credit, among others, can cause a …rm to exit the export market. These facts result in a lower trade openness of Brazil, compared to other BRICS [START_REF] Canuto | Brazilian Exports: Climbing Down a Competitiveness Cli¤[END_REF].

Theoretical framework: A model of heterogeneous …rms with credit constraints

The literature on the link between credit constraints and the international trade suggested di¤erent theoretical frameworks that describe the activities of exporting …rms and the mechanisms through which, they get external liquidity. In the prior literature, some authors consider that exporters need external capital to only …nance the …xed costs related to the international trade activity; in this case, the credit constraints a¤ect the selection of …rms into exporting (extensive margin of trade) but not the level of their exports (intensive margin of trade).

Other authors suggest that exporters …nance both of their …xed and variable costs with external funds; in this case, credit constraints a¤ect the two margins of trade. In this paper, I assume that …rms can …nance both their …xed and variable costs with external capital. Hence, …nancial constraints are expected to reduce both the extensive and intensive margins of trade.

As presented in the theoretical literature, these e¤ects are expected to be more pronounced in the more vulnerable sectors.

I consider the theoretical model of [START_REF] Manova | Credit Constraints, Heterogeneous Firms and International Trade[END_REF] which involves a …rm-heterogeneity framework with N countries and S sectors. Within each sector s, heterogeneous …rms produce varieties in country i di¤erent from those in country j and consumers love varieties and share the same CES utility function so that the utility function in country j is:

U j = Y s 2 6 4 0 @ Z w2 s q js (w) " 1 " dw 1 A " " 1 3 7 5 s
Where q js (w) is the consumption demand of the variety w of the sector s in country j, s is the set of varieties of di¤erentiated products in sector s and " 1 is the elasticity of substitution across varieties of the sector s . s is a parameter that indicates the share of the sector s in the total expenditure in country j and satis…es 0 s 1 and

X s s = 1.
The price index in country j takes the following form:

P js = 0 @ Z w2 s p js (w) 1 " dw 1 A 1 1 "
with p js (w) is the price of the variety w of the sector s. If Y j is the total expenditure in country j, then, the demand for variety w of the sector s is:

q js (w) = p js (w) : s P 1 js Y j
Firms produce their products and sell them at the domestic market and can export them to other countries. The model assumes that the cost of producing one unit in the home market in sector s with productivity level a js is c js =a js where c js is a parameter that captures the di¤erences in terms of factor intensities between sectors and across countries. The …xed cost of entry in the domestic market is denoted c js :f j . For simplicity, …rms are supposed to …nance their domestic activities by the cash ‡ows of their operations. Consequently, only exporting activities require external liquidity. As in traditional trade models, it exists an iceberg trade cost ij 1; it follows that an exporter should export ij :q ij (a) so that q ij (a) arrives at the importing country. Moreover, exporting from country i to country j require a …xed cost f ij 0 where i 6 = j. ij and f ij are country-pair speci…c and the subscript i indicates the exporting country while j indicates the destination market. Firms are heterogeneous by their productivity level a js which can be represented by the cumulative distribution function g(a)

with support [a l ; a h ] with 0 a l a h . The total costs to export, q ij (a) are:

C ijs (a) = q ij :( ij :c js a js ) + c js :f j Manova (2013) also assumes that exporters are credit constrained. A …rm cannot …nance all its export costs internally; she needs to borrow a fraction d s of its total costs related to the exporting activity. A …rm borrows the capital from the …nancial system. Depending on the level of development of the …nancial system in the exporting country j, there exists a probability 0 < j < 1 that the contract is reinforced and that the borrower pays the repayment amount D(a). In the opposite case, the …nancial system claims collateral.

The sectors in the economy are heterogeneous in terms of reliance on external capital. The more the sector depends on external liquidity, the more it is …nancially vulnerable. In a given sector, all …rms have the same needs in terms of external capital and the same collateralizable assets. The model assumes that only a fraction z s of the up-front costs goes to tangible assets (equipment, machines, lands, plants. . . ) and can be collateralizable.

In the case of perfect …nancial systems, the …rms, with a productivity level above a determined cut-o¤, can export, as predicted by [START_REF] Melitz | The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity[END_REF]. Here, we add the …nancial constraints as determinants of the exporting decision. It is assumed that the productivity cut-o¤ in the case of imperfect …nancial systems noted 1=a ijs is higher than the productivity cut-o¤ in the absence of credit constraints 1=a 0 ijs so that 1=a 0 ijs < 1=a ijs . Considering these assumptions, exporting …rms from country j and operating in sector s will maximize their export pro…ts by solving the following function:

M ax jis = p jis (a):q jis (a) (1 d s ):q jis (a): ji :c js :a (1 d s ):f ji :c js j :F (a) (1 j ):z s :c js :f ej Subject to:

(1) q jis (a) = p 1 " jis (a):

s :Y i P 1 " is
Where s is the share of each sector in the total expenditure of the country, Y i is the total income of the country i and P is is price index in sector s in the country i.

(2) A ijs (a) = p jis (a):q jis (a) (1 d s ):q jis (a):

ji :c ji (1 d s ):f ji :c js > F (a) (3) B ijs (a) = d s : [q jis (a): ji :c ji + f ji :c js ] + (1 j ):F (a) + j :z s :c js :f ji > 0
In a context of …nancial constraints, the …rms need external funds to invest in the exporting market. They borrow capital from the …nancial system. If the contract is enforced, the …rms can o¤er at most the total amount of their net revenues to the creditor, A ijs (a). Similarly, the creditors will not provide …rms with external funds unless their net returns B ijs (a) are positive.

With competitive credit markets, the bankers break even and in equilibrium B ijs (a) = 0:

Hence, the maximization problem of the …rm is reduced to the …rm's problem in the absence of credit constraints, but with one condition: the repayment amount F (a) cannot exceed the net revenue of the …rm. More productive …rms can sell larger quantities and have larger net revenues; however, since the repayment amount F (a) depends on the quantity, this will lead more productive …rms to require larger amounts of external …nance and then, larger F (a). As a consequence, the export participation of the …rms is characterized by two di¤erent cut-o¤s 1=a H and 1=a L . All …rms with a productivity higher than 1=a L can export, but only those with a productivity higher than 1=a H will export at …rst-best, i.e. with quantities and prices of the maximization problem in the absence of credit constraints. 1=a H can be de…ned by

A ijs (a H ) = F (a H ).
Thus, 1=a H is the solution for:

1 (1 d s ) d s j : ij c js a H ijs P ! 1 " s Y i = 1 d s + d s j :f ji :c js 1 j j
:z s :c js :f ji [START_REF] Manova | Credit Constraints, Heterogeneous Firms and International Trade[END_REF] shows that the productivity cut-o¤ 1=a H is higher in countries with low level of …nancial development (assessed by the value of j ) and in sectors with high …nancial dependence on external …nance d s :

I recall that exporting larger quantities implies larger revenues and higher costs and thus, greater payments to the investor F (a), as well. It follows that …rms with productivities lower than 1=a H will be interested in exporting lower volumes than the unconstrained …rst-best level, at greater prices, to guarantee the same revenues A ijs (a) = F (a). The greatest price p L (a) that …rms can charge on their exports is the solution of maximization for the following equation:

p 1 " : sYi P 1 " h 1 (1 d s ) + ds j i = 1 d s + ds j :f ji :c js 1 j j :z s :c js :f ji
Exporters can then charge a price on their exports that can range from p H (a) = ij c js a ijs to p L (a) = ij c js a ijs 1 d s + ds j which is the price that maximizes the equation above. Using the expression of p L (a), the productivity cut-o¤ 1=a L is de…ned by the following equation:

1 d s + ds j 1 " : ij c js a L ijs P 1 " s Y i = " h 1 d s + ds j :f ji :c js 1 j j :z s :c js :f ji i
One can show that the productivity cut-o¤ 1=a L is systematically higher in …nancially less developed countries and in sectors which are more reliant on external funding. Note that these productivity cut-o¤s 1=a H and 1=a L de…ne the proportion of the …rms that can enter the exporting market in the presence of credit constraints, which is called the extensive margin of trade. Here, I am also interested in the value of exports of the individual …rms, i.e. the intensive margin of trade. The value of exports of …rm f from country j to country i in sector

s is 8 > > > > > > > < > > > > > > > : ij c js a ijs P 1 "
s Y i for …rms with 1=a 1=a H p(a):q(a) for …rms with 1=a L 1=a 1=a H where ij c js a ijs p(a) ij c js a ijs 1 d s + ds j and q(a) ij c js a ijs " sYi P 1 " and that veri…es A ijs (a) = F (a) 0 otherwise

9 > > > > > > > = > > > > > > > ;
To summarize, the main prediction of this theoretical framework is that more productive …rms are more export performant, an that the e¤et of a higher productivity level is more prnounced for …rms operating in sectors that exhibit large needs in terms of external capital.

In this study, the productivity level will be proxied by the …rm size, following the basic idea in standard heterogeneous …rm trade models (Manova et al, 2011). in an industry, de…ned as the share of R&D expenses in the total sales. In fact, R&D expenditures are incurred at the beginning of the production process and they are considered as up front …xed costs that are in general large costs especially when the product will be distributed in a foreign market [START_REF] Manova | Credit Constraints, Heterogeneous Firms and International Trade[END_REF]. Moreover, we employ the ratio of inventories to sales which re ‡ects the liquidity needs of the company. Note that this indicator re ‡ects the liquidity needs in the short term. Finally, I make use of the asset tangibility indicator. This measure comes from [START_REF] Braun | Financial Contractibility and Asset Hardness[END_REF] and shows that the …nancial vulnerability of the sector depends not only on the reliance of the sector on the external …nance but also on the availability of hard assets. In fact, industries with fewer tangible assets have less assets to o¤er as collaterals for the …nancial system and then, are less likely to get external funds. This e¤ect is more pronounced in the sectors that are more reliant on the external …nance [START_REF] Braun | Financial Contractibility and Asset Hardness[END_REF].

All these measures are computed for US …rms and are supposed to capture the technological charcateristics of each sector that make the manufacturing processes and up-front costs di¤erent across sectors. Furthermore, these di¤erences are assumed to remain stable across countries [START_REF] Rajan | Financial Dependence and Growth[END_REF][START_REF] Braun | Financial Contractibility and Asset Hardness[END_REF]. As presented in the standard literature, this assumption can be motivated by a number of arguments. First, the US have one of the most advanced …nancial systems which makes the US indicators re ‡ect the optimal asset structure and …rm's demand for external funds, in the absence of credit supply constraints.

Second, the use of the US data as reference data can be suitable since it eliminates the potential endogeneity between the sector dependence on the external funds and the country's level of …nancial development or credit availability.

Descriptive Statistics

Before presenting the econometric analysis, I begin by presenting some descriptive statistics of the database on Brazilian exporting …rms in Industrial sectors, in 2010, detailed in Ap-pendix 3. The data available at SECEX cover all the exporting …rms in the year 2010. The majority of these …rms export less than 1 million US $. Since the aim of the paper is to focus on manufacturing sectors, I restrict the sample to those …rms that operate in industries of transformation according to CNAE 2.0 classi…cation. These …rms represent 64 percent of the whole sample of exporting companies, which accounts more than 20000 …rms. Due to the lack of information on some explanatory variables, the …nal dataset covers 10266 exporting …rms.

The sector of machinery and equipment, CNAE 28, is the most present in this …nal sample with 14 percent of the sample. More than 80 percent of these …rms export less than 1 million US $.

When looking at the distribution of the …rms in my sample, one can stand out two patterns.

First, most of the …rms that export in 2010 are small and medium sized …rms. Only 4.5 percent of the exporting …rms are very large …rms. This fact can give the reader an idea about the organizational characteristics of Brazilian …rms. Second, the exporting …rms are likely to export less than 1 million US $. Less than 2 percent of Brazilian exporters exhibit export performances that exceed 100 million US $. Here, I precise that the most performant exporter in Brazil for the year 2010 is a subsidiary of Petrobras (Petróleo Brasileiro S.A).

I then, look at the sectorial characteristics of the …rms in my sample. I consider three groups 3 of sectors depending on the level of their external …nancing needs. I …nd that large and very large exporting …rms are mainly operating in industries with medium and higher levels of reliance on external …nance. On the other hand, small and medium exporting …rms are …rms operating in sectors with low and medium levels of external …nance dependence.

This pattern can be even more apparent when I consider RZ (1998) indicators of external …nance dependence. These …ndings suggest a more facility for large …rms to operate in sectors with higher dependence on external funds, compared to small and medium …rms. This fact encourages me to sum the four …rm size indicators into two sizes: Small and Medium …rms, and Large …rms A …nal remark concerns the extensive margin of trade, i.e. …rms that do not export in 2009 and that become exporters in 2010. Exporting …rms in 2010 are mainly exporters in 2009. This may suggest the di¢ culties for a …rm to become an exporter, which may be in relation with the importance of the up-front costs to be paid before entering the export market and the role of credit constraints in the ability to become an exporter [START_REF] Manova | Credit Constraints, Heterogeneous Firms and International Trade[END_REF].

6 Empirical strategy

Basic Speci…cation

The theoretical framework described above presents a number of predictions on the capacity of …rms to enter the export market and to realize pro…ts. Financial constraints including the …nancial development of the exporting country j, the reliance of the sector s on external funding and the …rm f 0 s characteristics a¤ect both the selection into exporting and the value of exports. Here, I focus on the intensive margin of trade, i.e. the value of exports. I begin by testing the prediction that the productivity cut-o¤ for exporting, and thus the probability of having higher export values varies across sectors. I also take into account the importance of …rm size as a determinant of …rm exports. I de…ne the following equation:

LnExports f = 0 + 1 :L f + 2 :F inV ul s L f + ' s + "
Here LnExports f are the total value of export sales of …rm f (in Log), in all industries and pooled across all of …rm f 's export destinations. L f is a …rm size dummy, which takes the value of 1 for large …rms, and 0 otherwise. Small and medium-sized …rms are considered as the reference category. F inV ul s measures the sector s's level of …nancial vulnerability in Brazil.

I use two proxies for the …nancial vulnerability: the external …nance dependence indicators for Brazilian manufacturing industries which are an adaptation of RZ's indicators for Brazil over the period 2000-2012 and the level of asset tangibility for Brazilian sectors computed over the same period. Finally, ' s are sector dummies that capture all the characteristics inherent to the activity within an industrial sector. The sign of 1 is predicted to be positive con…rming the e¤ect of the …rm size on the export performances. Large …rms are supposed to be less constrained compared to small and medium ones and thus, they are supposed to be more performant in sectors with higher needs for external funds. The predicted sign of 2 is then positive. Note that these signs could be a¤ected by the fact that the study concerns the Brazilian …rms. As presented in the literature section, Brazilian large …rms seem to be more credit constrained compared to SME, and that the Brazilian action to relax …nancing constraints seem to be directed towards SME rather than large …rms, which may a¤ect the link between …rm size, productivity level, credit constraints and export performances. This empirical study is thus an attempt to verify the theoretical linkages for Brazilian …rms.

Methodology

In order to test the empirical speci…cation, and to deal with data features, I use two methods based on maximum likelihood estimation.

Tobit extension: Interval regression

Since the export values for Brazilian …rms are only observed in intervals and that there is no information about the non-exporters, the main econometric speci…cation in this paper is based on an extension of the Tobit model. The estimation of parameters is driven by a maximum likelihood estimation. I note Y f = LnExports f . Then, the likelihood function is de…ned:

L = Y Y f <a h a X 0 i Y a<Y f <b h b X 0 a X 0 i Y b<Y f <c h c X 0 b X 0 i Y c<Y f <d h d X 0 c X 0 i Y Y f >d h 1 d X 0 i
where a, b, c and d are known cut-o¤s. The dependent variables are then the limits of the interval of export values (in Log) for each exporting …rm in my sample.

Ordered Probit model

The dependent variable LnExports f is considered as latent, since there are no available data on the exact values of exports at …rm-level. I have however a categorical variable Class of Exports j that is observed. There are …ve classes of exports in million US $, ranging from 1 to 5, 5 being the higher class of exports. The equation de…ned in the empirical strategy can be then estimated with a probability Ordered Probit speci…cation (see Appendix 4). The dependent variable is the probability for a Brazilian exporting …rm to be in a given Class of Exports j . The conditional probability of exporting in a given Class of Exports j will be de…ned as follows:

P (Class of Exports j j Observed variables) f = 0 + 1 :L f + 2 :F inV ul s L f + ' s + " f s
Where:

Class of Exports 1 = 1 if LnExports f 1 Class of Exports 2 = 2 if 1 LnExports f 2 Class of Exports 3 = 3 if 2 LnExports f 3 Class of Exports 4 = 4 if 3 LnExports f 4 Class of Exports 5 = 5 if LnExports f 4
The 0 s are unobserved thresholds to be estimated with . They are values of exports that make the di¤erence between two di¤erent categories, here classes of exports. Ordered Probit estimation assumes that the " f s is normally distributed across observations and I normalize the mean and the variance of " f s to zero and one, so that " f s N (0; 1):

Results

In this section, I begin by presenting the estimation results on the e¤ect of the …rm size and the industry's level of …nancial vulnerability on the export performances. I will focus on the results of the Interval regression method, since it better exploits the available data.

The …nancial dependence of the sector is proxied by the Brazilian indicator of dependence on external …nance and the ratio of asset tangibility, computed for the recent period of 2000-2012. In Table 1, I display the basic regression results in column 1; other columns present the results of augmented speci…cations, where I add some variables of control that may be linked to the …nancial constraints 4 . The results show that large …rms are more likely to earn higher export revenues than small and medium ones and that this e¤ect is less powerful in sectors with higher levels of dependence on external funds 5 . As expected, the size has a positive e¤ect on the export performances of Brazilian companies: larger …rms are supposed to be less constrained and as a result, they are more likely to export larger values. This …nding is in line with the predictions of [START_REF] Melitz | The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity[END_REF]. Since large …rms are in general more productive, these …rms will be more likely to perform when entering the export market. This lead is however found to be less pronounced is sectors with higher requirements for outside capital.

Inconsistently with the idea that large …rms may be less constrained and thus more likely to enter industries with higher needs of external funds, Brazilian large …rms do not seem to be more performant in terms of exports, when they operate in sectors with higher external …nancing needs, compared to small and medium …rms. This …nding can be supported by the limited access to credit due to the situation of the Brazilian …nancial market. In fact, despite the evolution of the Brazilian banking and …nancial systems, the …nancing at medium-term and long-term remains rare (Ernst &Young, 2011), which causes a scarcity in credit o¤er to the …rms. This fact coupled with the lack of mature market institutions and the high interest rates charged on loans to private sector, make it di¢ cult to …rms operating in sectors that highly depend on bank funding, to get the funds and to expand their activities. All these "institutional voids" linked to the Brazilian …nancial market represent a barrier not only for small …rms, but also for large ones. To illustrate this idea, Embraer, a large Brazilian multinational company, con…rms that due to the lack-well developed …nancial market, the support of Brazilian government was necessary to help her expand its activities to foreign markets [START_REF] Parente | Lessons learned from Brazilian multinationals' internationalization strategies[END_REF]. In addition, since the data are for the year 2010, one can also explain the credit scarcity in the Brazilian …nancial market, by the e¤ects of the …nancial crisis of 2008. In the aim of stabilizing the …nancial market after the crisis, the Brazilian authorities imposed capital in ‡ows controls. [START_REF] Alfaro | The Real E¤ects of Capital Controls: Financial Constraints, Exporters, and Firm Investment[END_REF] examined the e¤ects of these controls on Brazilian …rms. Their …ndings suggest a drop in the advantages of being a large …rm in accessing to credit and that …rms external …nance dependent …rms su¤ered more from the imposition of these controls. The negative e¤ect of the crisis on the access to credit was also demonstrated for the industries of the Euro zone. Particularly, sectors that are more dependent on external …nance have seen their access to credit harder (The Quarterly report on the Euro Area, 2013). I move then to discuss the results obtained from augmented speci…cations. Region dummies do not a¤ect the sign and the signi…cance of my variable of interest. Compared to Southeast region, operating in the region of the Northeast has a positive e¤ect on the export performance of Brazilian …rms. Although South and Southeast regions are more branched (Kumar and Francisco, 2005), this result can be justi…ed by the tax and other investment incentives o¤ered by the Brazilian government in order to promote activities in this region [START_REF] Ernst | Doing business in Brazil[END_REF]. I also introduce a dummy variable Exp2009 that indicates whether the …rm exported in 2009 or not; this variable can account for the extensive margin of trade. Similarly, I …nd that being an exporter in 2009 has a positive e¤ect on the export performance in 2010. In fact, being an exporter in 2009 means that in 2010, the …rm has to pay only variable costs, since up-front costs are supposed to be paid in 2009 or before, in line with the context of [START_REF] Manova | Credit Constraints, Heterogeneous Firms and International Trade[END_REF]. As a consequence, the …rm can be less constrained in 2010 which makes it more possible for her to export higher values in 2010, citeris paribus. Unlike region and Exp2009 dummies, the inclusion of Parent as a variable of control a¤ects the signi…cance of the interaction between the size and the level of dependence on external …nance for Brazilian industries. The non-signi…cance of this variable of interest may tell the reader that the credit constraints encountered by exporting …rms are likely to be driven by the …rm structure rather than the level of …nancial vulnerability in which the …rm acts. The estimation results show that a …rm exports more when it is an a¢ liate …rm of a parent company established in Brazil.

Export activity is driven by subsidiaries and branches of Brazilian and Multinational companies. Due to data availability, I cannot properly make the di¤erence between subsidiaries of foreign companies (headquarters abroad) and of Brazilian owned companies (headquarters in Brazil). I can, however, present some explanations for the fact that a¢ liated …rms export rather than the main establishments in Brazil. It is mainly related to federal incentive programs designated to promote the growth of Brazilian exports. A …rm which decides to create a branch for export production bene…ts from government support (UHY Report, 2013).

In this way, companies established in Brazil and aiming to export may see it pro…table to create branches or subsidiaries devoted to export activities, in order to bene…t from tax and investment advantages. Another argument relative to the Brazilian case may be the related to the market size of Brazil. In order to meet the demand in di¤erent regions of Brazil, a company may see it less costly to establish a subsidiary near the customers in the di¤erent regions of Brazil, rather than paying high transport and delivery costs (ABP O¤shore, 2014).

According to Brazilian National Logistics and Transport Plan (PNLT) established in 2007, a number of investments are needed to better the transport infrastructure and logistics sector, notably the extension of the interconnections of the North-South regions. Taking into account these di¤erent facts, assume that an exporting company, established in São Paulo, wants to sell a part of her goods in Manaus. Here, if the …rm decides to create a subsidiary in Manaus, it will bene…t not only from government incentives related to its exporting activities but also from tax incentives for developing the region of Amazonas, notably those o¤ered by the Superintency for the Development of the Amazon (SUDAM). I move then to the second proxy of …nancial vulnerability for Brazilian industries which is the ratio of asset tangibility. In line with the literature, Table 2 shows that large …rms export more than small and medium ones and that this e¤ect is less pronounced in sectors that with high part of tangible assets in total assets. Firms operating in these sectors may have easier access to bank credit than those in sectors with more intangible assets such as pharmaceutical industry. Tangible assets can be presented as collaterals when demanding external funding.

Consequently, having more tangible assets is considered as a form of relaxation of credit constraints. This may reduce the importance of …rm size on accessing to external …nance. Finally, I estimate the same speci…cations using an Ordered Probit probability model. This model has as its ordered dependent variable levels of export performance for Brazilian exporting …rms during the year 2010. The estimation results in Appendix 4 are similar to those of interval regressions6 . The results show that large …rms have greater probability to export more than 100 million US $ and that this probability is less important when the …rm acts in a sector with higher external …nancial needs. The augmented speci…cations explain more precisely the export performance of Brazilian exporting …rms since the pseudo-R 2 are higher when the control variables are included.

Robustness checks

In this paragraph, I examine whether the measure of external …nance dependence used to proxy the level of …nancial vulnerability of industries matters. In the previous section, I focus on Brazilian measures which I calculated over the recent period 2000-2012. Here, I conduct a number of tests to ensure the robustness of my results. To do that, I use di¤erent proxies of external …nance dependence that have been employed in the empirical literature. These measures are based on data for US …rms and are computed over earlier periods notably the 80s and the 90s. The …rst important measure of sectorial reliance on outside …nancing is the Rajan and Zingales (1998) measure. This measure is originally computed for the 80s and was updated for the 90s by [START_REF] Kroszner | Banking Crises, Financial Dependence, and Growth[END_REF]. Other measures claimed to be accounting for the …nancial external dependence at industry-level include the R&D intensity and the share of tangible assets in the total assets. Table 3 presents the estimation results using Interval regressions for the basic speci…cation. Practically, all the variables in the model present the same signs as when the external …nance dependence is proxied by Brazilian speci…c indicators.

The tests show that large companies have higher export performances compared to small and medium …rms, and that this positive e¤ect of being large a¤ects less the export performances when the …rm operates in a sector which highly relies on external capital. The results remain robust to the inclusion of the variables of control (see Table 4 The only exception is related to the interaction term between the size dummy and the sectorial measure of external …nance dependence of Rajan and Zingales (1998) computed over the 80s, which appears statistically insigni…cant. This …nding reinforces the pertinence of computing industry-level measures of external …nance dependence speci…c to Brazil, and built using data on recent periods. Due to the gap in terms of economic and …nancial development between the Brazilian economy and the US one, the level of dependence on external capital may di¤er for one sector across countries. A notable example is the Plastics industry, which was very reliant on external funding in the US in the 1980s and much less dependent in Brazil in the recent years. The Brazilian government has launched a program for accelerating the growth (Programa de Aceleração do Crescimento) in 2007 aiming at promoting the whole economy but seems to have particular positive e¤ects on Plastic sector (Society of Plastics Engineers Magazine, 2014). Furthermore, the Plastic industry bene…ts since 2004 from government support in the form of The Export Plastics Program implemented by APEX-Brazil, the Brazilian Trade and Investment Promotion Agency. These di¤erent programs provide this industry with funds, from di¤erent sources, which may help her be less credit constrained.

Finally, the results show that large …rms export more in sectors with more tangible assets, which is consistent with the …ndings of the previous section and in line with the predicted e¤ects in the literature. In order to exploit the di¤erences in terms of …rm size, I have also distinguished between large and very large …rms. The results remain unchanged. As presented in Appendix 5, very large …rms exhibit better export performances than large …rms and small and medium-sized ones and that they bene…t less from their size advantage when they operate in sectors with higher external funding needs 8 .

Conclusion

In this paper, I investigate the impact of the …nancial frictions on the export performances in Brazil. I provide micro-level evidence on the role of industry constraints coupled with the …rms' characteristics in the access to credit and in consequence, in the …rms' ability to perform when entering foreign markets. Using data from the Brazilian customs for the year 2010, I show that the …rm size has a positive e¤ect on the …rms'performances, notably, the …rms'export participation. Large …rms are found to be more likely to be export performant compared with small and medium …rms. However, the importance of the …rm size decreases when the exporting …rm operates in an industry that highly relies on external funding, to …nance her investments. Although this result is not in line with the literature's predictions, it can be consistent relative to the Brazilian context. The level of development of the Brazilian …nancial system makes the cost of external …nance high. Since large Brazilian …rms are in their majority family-owned compared to those in other countries where they are mainly multinational companies (Brainard and Martinez-Diaz, 2009), their access to external …nance may not be as easy as one can suggests. In addition, the recent Brazilian action through SME …nancing programs could be behind the disturbances in terms of productivity and e¢ ciency, in comparison with the standard link between …rms size, productivity level and export performances as considered by the standard heterogeneous …rms trade models. Moreover, note that the analysis concerns the year 2010, soon after the global …nancial crisis. This fact may alter the results since the credit scarcity in Brazil, as in all over the world, has been reinforced. Large companies were not immunized against the lack of funds. Other …rms'characteristics are found to a¤ect the export performances. Being an exporter in 2009, for example, is a factor in favor of exporting more in 2010. This is in line with the predictions of Manova (2013), since these …rms will not need to pay …xed costs related to export activity, in 2010.

Being a subsidiary and not a main establishment in Brazil is also in favor of higher export performances. Relatively to this point, it would be interesting to distinguish between Brazilian companies and Foreign-owned companies, in future researches. In fact, it is assumed that foreign-owned …rms (multinational or joint-venture) have less credit constraints since they can seek for external …nance, internationally (Manova et al, 2011).

With regards to the importance of …rm size as a determinant in being a performant exporter, I recognize that being large may be endogenous in the regression on export performance intervals. For example, the learning-by-exporting e¤ects suggest that, a part from the positive e¤ect of size on the probability of exporting, exporting companies have more chances to be productive and to expand and become large [START_REF] Araújo | Os Determinantes do comeércio internacional ao nivel da …rma: Evidências empiricas[END_REF][START_REF] Araújo | Export potential of Brazilian industrial …rms[END_REF].

Due to lack of data, treating this endogeneity issue was not possible.

An implicit implication of the results is that the …rm size can have mitigated e¤ects on …rm's performances, particularly in countries with underdeveloped …nancial systems. In order to better the Brazilian performances in terms of international trade, an action may be required to relax credit constraints not only for SME, but also for large …rms. The …ndings of this paper must be interpreted relatively to the current context of the international scene, after the global crisis of 2008. In fact, the e¤ects of the …nancial crisis have resulted in a range of …nancial and economic reforms and controls (as in Brazil) that made the access to credit worse, which in return negatively a¤ects …rms'investments and the economic prosperity, as well. Policy implication for limiting the e¤ects of the …nancial crisis would matter. It follows that further research is needed to disentengle the e¤ects of the …nancial crisis from the e¤ects of the country's and sector's …nancial frictions, when explaining the …rms'export performances.

=3j X) = ( 3 X 0 ) ( 2 X 0 ) Prob (Class of Exports 4 =4j X) = ( 4 X 0 ) ( 3 X 0 )
Prob (Class of Exports 5 =5j X) = 1 ( 4 X 0 )

Where (c) is the cumulative distribution function of the error " and X is the vector of explanatory variabes de…ned above.

The estimation of parameters is driven by maximum likelihood estimation. I note y j = Class of Exports j . Then, the likelihood function is de…ned: Pr (y j = 1)

L =
N 2 Y N 1 +1
Pr (y j = 2)

N 3 Y N 2 +1
Pr (y j = 3)

N 4 Y N 3 +1
Pr (y j = 4)

N Y N 4 +1
Pr (y j = 5)

L = N 1 Y i=1 ( 1 X 0 ) N 2 Y N 1 +1 ( 2 X 0 ) ( 1 X 0 ) N 3 Y N 2 +1 ( 3 X 0 ) ( 2 X 0 ) N 4 Y N 3 +1 ( 4 X 0 ) ( 3 X 0 ) N Y N 4 +1 1 ( 4 X 0 )
Thus, the log likelihood function is:

ln L = N 1 X i=1 ln F ( 1 X 0 ) + N 2 X i=N 1 +1 ln h ( 2 X 0 ) ( 1 X 0 ) i + N 3 X i=N 2 +1 ln h ( 3 X 0 ) ( 2 X 0 ) i + N 4 X i=N 3 +1 ln h ( 4 X 0 ) ( 3 X 0 ) i + N 4 X i=N 3 +1 ln h 1 ( 4 X 0 ) i

  data on Brazilian exporting …rms in the year 2010. The data are gathered from di¤erent sources in order to construct a comprehensive database. Data on export values of Brazilian exporting …rms have been collected by Secreteriat of Foreign Trade SECEX-Brazilian Customs Authorities. The SECEX records every legally registered export transaction from Brazilian …rms. For each transaction, the available information include the exporting …rm (establishment level) 2 , identi…ed by its unique 14-digit identi…er CNPJ (Cadastro Nacional de Pessoa Jurídica), the value of exports in US dollars, the country of destination, the exported product at the eight-digit NCM (Nomenclatura Comun do Mercosul ). Unfortunately, I have no access to these detailed data. The information available includes the CNPJ identi…er of the exporting …rm, the Federal Unit in which the …rm operates as well as the FOB total export range of value. The SECEX classi…es the exporting …rms according to their FOB export values in Million US $ into …ve intervals as follows: Exports 1 million US$, 1 million US$ Exports 10 million US$, 10 million US$ Exports 50 million US$, 50 million US$ Exports 100 million US$ and Exports 100 million US$. I focus my empirical study on annual exports for the year 2010. Since my aim is to take into account …nancial constraints at industry-level, I match the legal identi…ers of the …rms in my sample CNPJ with the sectors in which these …rms mainly operate. This step required hand data collection. Data on the main economic activities of the exporting …rms are collected from the Brazilian Ministry of Public Finance (Receita Federal do Brazil ). The industries are classi…ed following the Brazilian national classi…cation of economic activities CNAE 2.0. Since a company can be pure import-export company that does not engage manufacturing, I restrict my sample to the exporting …rms for which the main activity is a manufacturing one, i.e. in the subclasses ranging from 10 to 32. Note that a …rm can export di¤erent products related to di¤erent sectors. Here, due to lack of data availability on the details about the di¤erent goods a …rm exports, I assume that a …rm's exports are of goods that correspond to her main economic activity. Although this assumption is restrictive, it does not bias our principal study concern which is to test how sector …nancial constraints a¤ect the export performance of the …rm. In general, the …nancial system only checks the main activity of a …rm when deciding of the eligibility of the …rm to getting a loan. By exploiting the same source of data, I have also collected data on the legal status of the …rm, i.e. whether the …rm is the main establishment in Brazil or a subsidiary. I use this information in order to capture the di¤erences between parent …rms and a¢ liate companies in the access to the external …nance. Here, the term "parent" does not necessarily refer to the headquarter company ; it rather means the …rst establishment of a company (Brazilian or foreign) based in Brazil. Data on …rm size are obtained from the ORBIS database, a private database constructed by Bureau Van Dijk and gathering …rm level data for over 7 million …rms all over the world. The data available include four size indicators as follows: small, medium, large, and very large. The de…nition of the size is based on a number of proxies of size notably the number of employees and the …rm turnover. These indicators are merged into two distinct indicators: Small and Medium …rms, and Large …rms (including large and very large ones). Moving to the data on the industry measures of …nancial constraints, I use two Brazilian measures of sector reliance on external funding. The …rst and main measure is the external …nance dependence (EFD) which is the share of capital expenditures that are not …nanced by the cash ‡ows from operations. This measure is an adaptation for Rajan and Zingales (1998) measures of external …nance dependence calculated for the US sectors over the 80s, to Brazilian sectors over the recent period of time 2000-2012. The second measure is the level of asset tangibility of Brazilian industries computed over the same period. Both measures have been constructed in a previous work, and meant to be more coherent with the Brazilian context, in comparison with the indicators used in the literature (See Appendix 2). I then subject these Brazilian measures to a number of robustness checks using industry measures of reliance on external …nance directly borrowed from the literature on the e¤ects of …nancial constraints. The …rst indicator is Rajan and Zingales (1998) measure of …nancial external dependence that is based on data for US publicly traded …rms. This indicator corresponds to the median value of the average external …nance dependence ratio over the 1980-1989. I also use the updated values of this indicator, from Kroszner et al (2007). The authors calculated the EFD indicators over 1980-1999. A third measure is the R&D intensity

  )7 .

Appendix 2 :

 2 External Finance Dependence -Manufacturing Sectors In

  Pr(y 1 = 1 ; y 2 = 1 ; :::; y N 1 = 1 ; y N 1 +1 = 2 ; :::; y N 2 = 2 ; y N 2 +1 = 3 ; :::; y N 3 = 3 ; y N 3 +1 = 4 ; :::; y N 4 = 4 ; y N 4 +1 = 5 ; :::; y N = 5) with N the total number of observations for Brazilian exporters in 2010.

Table 1 :

 1 E¤ect of …nancial constraints on …rm exports within sectors -Brazilian sectoral External Finance Dependence Indicator -Interval Regression

	Dep. Var:

Table 2 :

 2 E¤ect of …nancial constraints on …rm exports within sectors -Brazilian level of sectorial Asset Tangibility -Interval Regression Small or medium-sized company, CNAE 21, in the Southeast of Brazil.

	Dep. Var:	(1)	(2)	(3)	(4)	(5)	(6)	(7)
	Export Intervals
	L f	2.940***	2.890***	2.488***	3.280***	3.232***	2.935***	2.876***
	TangsxL f -3.388***	-3.259***	-2.861***	-1.406***	-1.293**	-1.132**	-0.989*
	Exp2009			2.257***			2.110***	2.115***
	Parent				-2.952***	-2.944***	-2.893***	-2.884***
	South		-0.004	-0.001		0.056		0.053
	North		0.045	0.229		0.252		0.414***
	NorthEast		0.807***	0.772***		0.631***		0.597***
	CentralWest		0.496**	0.638***		0.007		0.167
	_cons	12.047***	12.020***	10.206***	14.004***	13.993*** 12.253***	12.233***
	Controls:				Sector F.E.
	lnsigma_cons	0.938***	0.934***	0.905***	0.827***	0.825***	0.796***	0.794***
	Log Likelihood -7951.955	-7933.888	-7706.296	-7303.166	-7290.576	-7087.101	-7073.649
	#observations	10266	10262	10262	10266	10262	10266	10262
	Reference …rm: Sector controls are not reported. Signi…cance: * 1%, ** 5%, *** 10%

Table 3 :

 3 Robustness Checks -Basic speci…cation

	Dep. Var : EFD	EFD	R&D	Asset
	Export levels US 80s	US 90s	Intensity	Tangibility
	L f 1.770***	1.742***	1.822***	3.385***
	FinVulnsxL f -0.034	-0.458***	-2.047**	-5.600***
	_cons 12.355*** 12.834***	12.831*** 12.006***
	Controls:	Sector F.E.
	lnsigma_cons 0.928***	0.926***	0.927***	0.925***
	Log Likelihood -7908.191	-7904.252	-7905.777	-7879.151
	#observations 10266	10266	10266	10266
	Reference …rm: Small or medium-sized company, CNAE 21.
	Sector controls are not reported. Signi…cance: * 1%, ** 5%, *** 10%

Table 4 :

 4 Robustness Checks -Augmented speci…cation Small or medium-sized company, CNAE 21, in the Southeast of Brazil.

	Dep. Var: EFD	EFD	R&D	Asset
	Export levels US 80s	US 90s	Intensity	Tangibility
	L f 1.488***	1.470***	1.552***	2.927***
	Exp09 2.274***	2.268***	2.274***	2.258***
	FinVulnsxL f -0.014	-0.403**	-2.160**	-4.959***
	South -0.005	-0.007	-0.006	-0.010
	North 0.252	0.267	0.258	0.213
	NorthEast 0.716***	0.710***	0.716***	0.689***
	CentralWest 0.638***	0.657***	0.659***	0.618***
	_cons 10.453*** 10.897***	10.973*** 10.163***
	Controls:	Sector F.E.
	lnsigma_cons 0.984***	0.893***	0.893***	0.892***
	Log Likelihood -7656.698	-7653.495	-7653.880	-7632.937
	#observations 10262	10262	10262	10262
	Reference …rm: Sector controls are not reported. Signi…cance: * 1%, ** 5%, *** 10%

The plan "Real" consists in a …nancial program initiated by the Brazilian government in the mid-1990s. This plan introduced a new currency "the Real" and an exchange rate that was partially linked to that of the US dollar, limited government spending and made other …scal reforms.

Di¤erent establishments of a same company are considered as two distinct entities.

The groups are de…ned by the 25th and the 75th percentiles of the values of the Brazilian external …nance dependence indicator.

See Appendix 3 to have more details about the augmented speci…cations and the variables'de…nitions.

Note that the coe¢ cients do not correspond to the real e¤ect of explanatory variables on the dependent variable. Computing Marginal e¤ects is necessary to get the exact changes in the dependent in the export variable after a change in explanatory variable. Having said that, the signs and the signi…cance of the coe¢ cients of these regressions do not change, in comparison with those of marginal e¤ects.

To make comparison between interval regression results and ordered probit ones, the coe¢ cients in Interval regression models should be divided by the value of :

I do not report the results of all the augmented speci…cations. The results remain globally unchanged when including the di¤erent variables of control and robust to both methods of estimation.

I also perform further regressions where I distinguish between small, medium, large and very large …rms. The estimation results show that the …rm size may present a slight in ‡ection for medium …rms. However, this may be due to dispersion issues. These results are not reported.

The probability for an exporting …rm to export in a given Class of Exports j can be de…ned as follows: