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Exporters, importers and credit constraints

Muûls, Mirabelle (2012) Exporters, importers and credit constraints. CEP Discussion Papers (CEPDP1169). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Abstract

This paper analyses the interaction between credit constraints and trading behaviour. I construct a unique dataset containing firm-level trade transactions data, balance sheets and credit scores from an independent credit insurance company for Belgian manufacturing firms between 1999 and 2007. Firms are more likely to be exporting or importing if they enjoy lower credit constraints. Also, firms that have better credit rating export and import more, and more products to and from more countries. Whilst importing and exporting behavior are very similar in a static view, an analysis of how various margins of trade are related to credit constraints show a significant difference between the two. In the case of exports, it is the extensive margin of exports in terms of destinations that is significantly associated with credit constraints whereas for imports it is the extensive margin in terms of products.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2012 The Author
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HF Commerce
JEL classification: F - International Economics > F1 - Trade > F10 - General
F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade
G - Financial Economics > G0 - General > G00 - General
G - Financial Economics > G2 - Financial Institutions and Services > G20 - General
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 07 Aug 2013 14:50
Last Modified: 14 May 2019 23:22
URI: http://eprints.lse.ac.uk/id/eprint/51516

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