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Exporters, importers and credit constraints

Muuls, Mirabelle (2015) Exporters, importers and credit constraints. Journal of International Economics, 95 (2). pp. 333-343. ISSN 0022-1996

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Identification Number: 10.1016/j.jinteco.2014.12.003

Abstract

This paper analyzes the interaction between credit constraints and trading behavior, decomposing trade in extensive and intensive margins. I construct a unique dataset containing firm-level trade transaction 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. Importing and exporting behaviors differ in how both the level and growth of the various margins of trade are related to credit constraints in one important dimension. In the case of exports, it is the intensive and extensive margins of exports in terms of both product and destinations that are significantly associated with credit constraints whereas for imports it is the extensive margin in terms of products only.

Item Type: Article
Official URL: http://www.sciencedirect.com/science/journal/00221...
Additional Information: © 2014 The Author © CC BY 4.0
Divisions: Centre for Economic Performance
Subjects: 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 > G2 - Financial Institutions and Services > G20 - General
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 12 May 2015 09:17
Last Modified: 20 Jun 2019 02:04
Projects: PTA-030-2002-00845
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/61898

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