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Export growth and credit constraints

Listed author(s):
  • Besedeš, Tibor
  • Kim, Byung-Cheol
  • Lugovskyy, Volodymyr

We investigate the effect of credit constraints on the growth of exports at the micro level. We develop a stylized dynamic model showing that credit constraints play a key role in early stages of exporting, but not in later stages. Our empirical results using product level data on exports to 12 European Union members and the U.S. support the model׳s predictions: exports from more credit constrained and riskier exporters grow faster. Export growth rates decrease with duration and converge across countries. While an important force in early stages credit constraints affect export growth much less as the duration of exports increases.

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File URL: http://www.sciencedirect.com/science/article/pii/S0014292114000713
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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 70 (2014)
Issue (Month): C ()
Pages: 350-370

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Handle: RePEc:eee:eecrev:v:70:y:2014:i:c:p:350-370
DOI: 10.1016/j.euroecorev.2014.05.001
Contact details of provider: Web page: http://www.elsevier.com/locate/eer

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