Abstract: This study attempts to examine how access to finance and financial development affects firm’s ability to export in Asia–Pacific countries. Using firm level data from World Bank Enterprises Survey, we found that access to
finance plays an important role in promoting the firm’s export market entry. In addition, development in financial sector results into a higher likelihood of firm entering into export market. The effect of financial development is more
prominent in terms of reach of the banking sector. We also found that interplay between access to finance, financial development and location reduces the limiting effect of location on firm’s ability to export. The study suggests that
improvement in access-to finance and financial development (increase in reach of banking sector), firms operating away from capital or main cities would find export market entry easier. The study supports that strengthening financial
sector development would encourage firm’s exportability, and also emphasizes the need of access to finance to facilitate the firm’s exporting activities for remotely located places.
Keywords: Access to Finance, Exports, Financial Development, International
JEL: D22, F14, O16, O53