We consider the impact of the Brazilian crisis of 1999 on the extensive and intensive margin of exporters versus non-exporters through the open economy balance sheet channel. Using an open economy balance sheet channel model with firm heterogeneity, we explore predictors that firms will engage in global markets. Our results based on a detailed firm-level panel of data for Brazilian 10,573 firms…

axing the financial sector, direction and indirectly, has long been relatively easy even for governments with limited taxing capacity. But growing awareness of the strategic importance of the financial sector in catalyzing economic growth has led governments to reconsider the financial sector's potential as a budgetary cash-cow. Indeed, the pendulum may have swung to the other extreme, with spe…