Title: Do financial constraints drive digital export? Policy implication based on a cross-country firm-level study

Authors: Bui Huu Toan; Do Manh Phuong

Addresses: Banking Academy of Vietnam, Chairman of Board Comittee, No. 12 Chua Boc, Dong Da Dist, Hanoi, 10000, Vietnam ' Inspection – Legal Department, Banking Academy of Vietnam, No. 12 Chua Boc, Kim Lien Ward, Hanoi, 10000, Vietnam

Abstract: This paper examines how financial constraints affect firms' participation in digital exports using cross-country firm-level data from the World Bank Enterprise Surveys. Digital exporting-international trade conducted through electronic channels-requires investment in digital infrastructure, compliance, innovation, and online platforms, making firms sensitive to credit frictions. We develop a refined financial-constraint measure combining perceived financing obstacles and discouraged borrower behaviour. Because digital export participation is binary, we estimate a probit model and address endogeneity with an instrumental-variable strategy based on sector-location averages. The results show that financial constraints significantly lower the probability of digital exporting, with stronger effects for SMEs. The findings underscore the importance of financial access for enabling digital trade and provide new firm-level evidence on financing barriers in digital globalisation, suggesting the need for targeted policy support to expand digital trade participation.

Keywords: financial constraints; digital exports; international trade; firm-level data; SMEs; endogeneity; WBES; policy implication.

DOI: 10.1504/IJTGM.2026.153770

International Journal of Trade and Global Markets, 2026 Vol.22 No.1, pp.31 - 56

Received: 08 Oct 2025
Accepted: 08 Jan 2026
Published online: 26 May 2026 *

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