Table 4: Banks, stock markets, and asset intangibility

|Dep. var.: Survival|(1)<br>1y|(2)<br>5y|(3)<br>10y|(4)<br>1y|(5)<br>5y|(6)<br>10y|
|---|---|---|---|---|---|---|
|asset intangibility _×_ banks|0.067<br>(0.056)|0.065<br>(0.043)|0.036<br>(0.032)||||
|asset intangibility _×_ stock markets||||0.213<sup>_a_</sup><br>(0.039)|0.181<sup>_a_</sup><br>(0.030)|0.087<sup>_a_</sup><br>(0.028)|
|asset intangibility _×_ GDPpc|0.017|0.025<sup>_c_</sup>|0.015|0.014|0.022<sup>_c_</sup>|0.011|
||(0.018)|(0.015)|(0.013)|(0.017)|(0.013)|(0.011)|
|asset intangibility _×_ real exchange rate|-2.114<sup>_a_</sup>|-2.055<sup>_a_</sup>|-1.534<sup>_a_</sup>|-2.829<sup>_a_</sup>|-3.340<sup>_a_</sup>|-2.298<sup>_a_</sup>|
||(0.759)|(0.728)|(0.558)|(1.049)|(0.775)|(0.614)|
|initial export|0.020<sup>_a_</sup>|0.016<sup>_a_</sup>|0.012<sup>_a_</sup>|0.020<sup>_a_</sup>|0.016<sup>_a_</sup>|0.012<sup>_a_</sup>|
||(0.002)|(0.002)|(0.001)|(0.002)|(0.002)|(0.001)|
|total export|0.041<sup>_a_</sup>|0.032<sup>_a_</sup>|0.024<sup>_a_</sup>|0.041<sup>_a_</sup>|0.032<sup>_a_</sup>|0.024<sup>_a_</sup>|
||(0.001)|(0.001)|(0.001)|(0.001)|(0.001)|(0.001)|
|number of suppliers|0.003<sup>_a_</sup>|-0.001<sup>_a_</sup>|-0.004<sup>_a_</sup>|0.003<sup>_a_</sup>|-0.001<sup>_b_</sup>|-0.004<sup>_a_</sup>|
||(0.000)|(0.000)|(0.000)|(0.000)|(0.001)|(0.000)|
|multiple spell|-0.042<sup>_a_</sup>|-0.268<sup>_a_</sup>|-0.351<sup>_a_</sup>|-0.044<sup>_a_</sup>|-0.274<sup>_a_</sup>|-0.360<sup>_a_</sup>|
||(0.008)|(0.015)|(0.021)|(0.008)|(0.016)|(0.022)|
|phys. cap. intensity _×_ physical capital|-0.123<sup>_c_</sup>|-0.146<sup>_a_</sup>|-0.089<sup>_b_</sup>|-0.033|-0.063|-0.016|
||(0.067)|(0.046)|(0.039)|(0.079)|(0.054)|(0.043)|
|hum. cap. intensity _×_ human capital|0.268<sup>_a_</sup>|0.258<sup>_a_</sup>|0.217<sup>_a_</sup>|0.274<sup>_a_</sup>|0.282<sup>_a_</sup>|0.241<sup>_a_</sup>|
||(0.027)|(0.021)|(0.019)|(0.031)|(0.024)|(0.021)|
|Observations|252,147|252,147|252,147|243,509|243,509|243,509|
|R-squared|0.263|0.546|0.692|0.254|0.547|0.695|
|Country-Time FE|yes|yes|yes|yes|yes|yes|
|Product FE|yes|yes|yes|yes|yes|yes|

Dependent variable is the probability of export survival of product _k_ from industrial sector (industry) _i_ exported by country _c_ to the USA. Export survival probability is measured _l_ years after the beginning of export spell, with _l_ = 1 in columns (1) and (4), _l_ = 5 in columns (2) and (5), and _l_ = 10 in columns (3) and (6). The regressions are estimated by OLS and contain a full set of fixed effects at the product level and the (exporting country)*time level, with time referring to the beginning of a given export spell. Asset intangibility is the ratio of the net value of intangible assets to the net fixed assets in industry _i_ . Other variables are described in Table 2. All time-varying explanatory variables are measured at the beginning of the export spell. Robust standard errors are clustered at the (exporting country)*time level, with time referring to the beginning of a given export spell.<sup>_a_</sup> ,<sup>_b_</sup> ,<sup>_c_</sup> denote statistical significance at the 1%, 5%, and 10% level, respectively.

For space reasons, we do not report in the remaining sections the coefficients for following control variables: initial export, total export, number of suppliers, multiple spell dummy, and interaction terms between physical and human capital endowments of country _c_ and the corresponding capital intensities at the industry level.

# **5 Size vs Activity of Stock Markets**

The results reported in the previous section revealed several patterns regarding the importance of banks and stock markets for export survival at the product level. This section explores if and how these patterns change when we distinguish between _large_ and _active_ stock markets.

In Table 6, we replace the traditional measure of deep stock markets - the normalized stock market capitalization (the market value of all listed shares divided by GDP) with 26