Table 3: Banks, stock markets, and liquidity needs

||(1)|(2)|(3)|(4)|(5)|(6)|
|---|---|---|---|---|---|---|
|Dep. var.: Survival|1y|5y|10y|1y|5y|10y|
|liquidity needs _×_ banks|0.103<sup>_a_</sup>|0.082<sup>_a_</sup>|0.050<sup>_b_</sup>||||
||(0.039)|(0.029)|(0.022)||||
|liquidity needs _×_ stock markets||||0.127<sup>_a_</sup>|0.052<sup>_b_</sup>|-0.009|
|||||(0.026)|(0.024)|(0.020)|
|liquidity needs _×_ GDPpc|0.059<sup>_a_</sup>|0.035<sup>_a_</sup>|0.028<sup>_a_</sup>|0.061<sup>_a_</sup>|0.043<sup>_a_</sup>|0.038<sup>_a_</sup>|
||(0.013)|(0.012)|(0.010)|(0.013)|(0.011)|(0.009)|
|liquidity needs _×_ real exchange rate|-1.246<sup>_b_</sup>|-0.362|-0.638|-1.392<sup>_c_</sup>|-0.317|-0.415|
||(0.596)|(0.504)|(0.394)|(0.722)|(0.586)|(0.470)|
|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>|-0.352<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|-0.056|-0.110<sup>_b_</sup>|-0.060|0.027|-0.028|0.016|
||(0.069)|(0.050)|(0.042)|(0.081)|(0.059)|(0.046)|
|hum. cap. intensity _×_ human capital|0.265<sup>_a_</sup>|0.259<sup>_a_</sup>|0.218<sup>_a_</sup>|0.273<sup>_a_</sup>|0.285<sup>_a_</sup>|0.241<sup>_a_</sup>|
||(0.027)|(0.021)|(0.019)|(0.031)|(0.024)|(0.022)|
|Observations|252,147|252,147|252,147|243,509|243,509|243,509|
|R-squared|0.264|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. Liquidity needs represents the median ratio of total inventories to sales 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.

characterized by a high share of intangible assets, as the corresponding interaction term is marginally significant only in two out of six specifications. By contrast, the interaction term of asset intangibility and real exchange rate is negative and highly significant in all six columns of Table 4. This suggest that a strong domestic currency disproportionately hurts exports of those products whose manufacturing process heavily relies on intangible assets.

A comparison of the results from Table 4 with Figure 2 and Figure 3 demonstrates the importance of controlling for alternative determinants of export survival like economic development, exchange rate or factor endowments. According to Figure 2 and Figure 3, both strong banks and deep stock markets promote exports of products from industries with a high share of intangible assets. Stock markets maintain this beneficial impact also 24