# **Table 7. Robustness: Information Complexity and Contractual Completeness**

||L|og of Export Value p|er|||
|---|---|---|---|---|---|
||Logof # of Exporters|Exporter|Exporter EntryRate|Exporter Exit Rate|Exporter Turnover Rate|
||(1)|(2)|(3)|(4)|(5)|
|||_Panel A: IV_|_Estimates for the Baseline S_|_pecification_||
|Foreign Bank*ExtFin|-2.258***|-0.131|0.184**|0.196**|0.295*|
||(0.716)|(0.869)|(0.084)|(0.095)|(0.150)|
|_First-stage_||||||
|Entry barriers (t-5)*ExtFin|0.103***|0.100***|0.096***|0.097***|0.096***|
||(0.025)|(0.025)|(0.025)|(0.025)|(0.025)|
|Kleibergen-Paap F stat|17.05|16.39|14.33|14.52|14.47|
|Cragg-Donald F stat|757.27|705.64|593.56|607.68|602.14|
||_Pa_|_nel B: Alternative M_|_easure of Country-Level Cre_|_dit Information Coverage_||
|Foreign Bank*ExtFin|-0.060|-0.667***|0.021|0.033*|0.064**|
||(0.110)|(0.188)|(0.017)|(0.018)|(0.030)|
|Foreign Bank*ExtFin*Credit registry coverage|0.017**|-0.007|-0.002**|-0.003***|-0.006***|
||(0.008)|(0.013)|(0.001)|(0.001)|(0.002)|
|Observations|18,114|17,689|16,327|16,316|16,171|
|R-squared|0.873|0.540|0.469|0.464|0.507|
|||_Panel C: Alter_|_native Measure of Informati_|_onal Complexity_||
|Foreign Bank*Rauch|1.022***|-0.061|-0.037|-0.044|-0.064|
||(0.147)|(0.249)|(0.025)|(0.027)|(0.049)|
|Foreign Bank*Rauch*Gov't effectiveness|-0.628***|-0.138|0.009|0.010|-0.012|
||(0.206)|(0.405)|(0.047)|(0.047)|(0.091)|
|Observations|18,114|17,689|16,327|16,316|16,171|
|R-squared|0.882|0.543|0.471|0.465|0.508|
|||_Panel D: Alte_|_rnative Measure of Contract_|_ual Complexity_||
|Foreign Bank*Nunn|1.645***|0.303|-0.084**|-0.099***|-0.161**|
||(0.167)|(0.330)|(0.033)|(0.035)|(0.065)|
|Foreign Bank*Nunn*Gov't effectiveness|-0.792***|-0.460|-0.038|-0.027|-0.098|
||(0.263)|(0.530)|(0.061)|(0.062)|(0.122)|
|Observations|18,114|17,689|16,327|16,316|16,171|
|R-squared|0.880|0.545|0.471|0.465|0.508|

Note: This table reports robustness tests for the effects of financial structures on the number, size and dynamics of exporters in 2-digit ISIC industries depending on the degree of informational and contractual complexity of products and countries. The financial structure is captured by the share of foreign bank assets in total bank assets in the country. The dependent variables are the number of exporters; the average foreign sales of exporters; the entry rate of exporters; the exit rate of exporters; the turnover (entry+exit) rate of exporters. All regressions include FinDev*ExtFin, Bank Concentration*ExtFin, country-year fixed effects and industry-year fixed effects, where FinDev is measured as all credit over GDP to control for total financial development and Bank Concentration is used to control for the concentration of the banking sector. Panel A reports the two-stage least squares estimates of the baseline specification (see equation (1) in Section 3) where Foreign Bank is instrumented using Entry Barrier lagged by five years. The indicator for Entry Barrier takes values from 0 to 3, with 0 representing the highest barriers and 3 the lowest. Regressions in panel B also include ExtFin*Credit registry coverage and FinDev*ExtFin*Credit registry coverage. The credit registry coverage is the percentage of adult population covered by a credit registry. Regressions in panel C also include Rauch*Gov't effectiveness, Foreign bank*ExtFin, FinDev*Rauch, and FinDev*Rauch*Gov't effectiveness. Regressions in panel D also include Nunn*Gov't effectiveness, Foreign bank*ExtFin, FinDev*Nunn, and FinDev*Nunn*Gov't effectiveness. The Rauch and Nunn indicator of contractual complexity are defined in Section 3.3. The Government Effectiveness index is from the Worldwide Governance Indicators. Credit registry coverage and Gov't effectiveness are demeaned by the sample average. Robust standard errors, clustered at the country-year level, are in parentheses. ***, **, and * denote statistical significance at the 1%, 5%, and 10% level, respectively.