How to do well

• Perform the appropriate quantitative analysis. Investigate the structure of the data
set and think carefully about which methodology and which variables should be used.

• Perform statistical tests to support your empirical approach and results if needed.

• You might use tables and graphs to develop and justify your empirical strategy.

• Present your tables clearly, provide a detailed and thorough analysis of all the findings
(without going over the word limit) and discuss whether they are precise or not.

• While you are not expected to get exactly the same results as the paper you are
replicating, you should use them as a guide for the types of answers you might expect
to get and must provide the economic intuition for each of your results.

• Submit well organised and detailed Stata code.

• Submit a piece of work that is well written, with no typographical or grammatical
mistakes, and that is well organised and well formatted.

In this coursework we are interested in replicating the results of Greenaway et al. (2007), who
explore the link between exporting and financial constraints. Greenaway et al. (2007) use data
drawn from the Financial Analysis Made Easy (FAME) database, which can be downloaded using
the link provided below. Read the paper carefully and answer parts A and B.

A. Replication (50%)

Follow the steps outlined below. Discuss your findings and any differences between your results
and Greenaway et al. (2007). Provide tables and/or graphs if needed.

1. Construct your data sample based on information in Section 3 of the paper. In particular,
ExpDum could be coded one if overseas turnover is non-missing and zero otherwise.

2. Replicate Tables 1-2 using the 2006-2015 data.

3. Replicate Columns (1)-(3) of Tables 3-4 using the 2006-2015 data.

4. Replicate Columns (1)-(3) of Tables 3-4 using the 2010-2018 data. Compare the results with
the ones obtained using the 2006-2015 sample.

5. (Optional) Replicate Columns (4)-(6) of Tables 3-4 using the 2006-2015 data.

B. Report (50%)

Write a critical report discussing Greenaway et al. (2007). Discuss the paper’s empirical strategy,
robustness of the results and any drawbacks.

References:

Greenaway, D., Guariglia, A., & Kneller, R. (2007). Financial factors and exporting
decisions. Journal of international economics, 73(2), 377-395.

Links:

Paper: https://www.sciencedirect.com/science/article/pii/S0022199607000554

FAME data: https://libguides.bham.ac.uk/az.php?a=f