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Credit contraction and international trade: Evidence from Chilean exporters

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  • Aisen, Ari
  • Álvarez, Roberto
  • Sagner, Andrés
  • Turén, Javier

Abstract

Using data of Chilean exporting firms, this paper studies the effect of the financial crisis on the extensive and intensive margin of export in the aftermath of the crisis. The negative effect of the crisis on exports is highly heterogeneous. The evidence shows that larger exporters, belonging to industries more dependent on overall credit, have suffered disproportionately more during the crisis in terms of export growth, but less in terms of entry and exit. This has important policy implications, as public policy aiming at stimulating trade credit may not be as effective if overarching credit conditions remain subdued.

Suggested Citation

  • Aisen, Ari & Álvarez, Roberto & Sagner, Andrés & Turén, Javier, 2013. "Credit contraction and international trade: Evidence from Chilean exporters," World Development, Elsevier, vol. 44(C), pages 212-224.
    • Handle: RePEc:eee:wdevel:v:44:y:2013:i:c:p:212-224
    DOI: 10.1016/j.worlddev.2012.09.016
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    1. Roberto Álvarez & Camila Sáez, 2015. "Post-Crisis Financiera y Expansión de las Exportaciones: Micro-Evidencia para Chile," Working Papers Central Bank of Chile 748, Central Bank of Chile.
    2. Lo Turco, Alessia & Maggioni, Daniela, 2014. "The micro evolution of trade and turnover in Turkey under the global crisis," Economic Systems, Elsevier, vol. 38(3), pages 397-414.
    3. Álvarez, Roberto & Sáez, Camila, 2014. "“Post financial crisis and exports expansion: Micro-evidence from Chilean exporters”," MPRA Paper 60637, University Library of Munich, Germany.
    4. repec:uii:journl:v:5:y:2013:i:1:p:45-56 is not listed on IDEAS
    5. Alvaro Aguirre, 2017. "Contracting Institutions and Economic Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 24, pages 192-217, March.
    6. International Monetary Fund, 2012. "Chile: Selected Issues," IMF Staff Country Reports 2012/266, International Monetary Fund.
    7. Caetani, Maria Inês & Alvim, Augusto Mussi & Hubbard, Carmem, 2015. "The Effects of the Costs of Trade Transaction and Free Trade in the International Soy Market," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204202, Agricultural Economics Society.
    8. Кокорева Мария Сергеевна & Степанова Анастасия Николаевна, 2012. "Financial architecture and corporate performance: evidence from Russia," Journal of Corporate Finance Research Корпоративные финансы, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», issue 2 (22), pages 34-44.
    9. Mr. Yi Wu, 2012. "Performance of Publicly Listed Chilean Firms During the 2008-2009 Global Financial Crisis," IMF Working Papers 2012/261, International Monetary Fund.
    10. Youngwoo Rho & Joel Rodrigue, 2015. "Growing into Export Markets: The Impact of Exporting on Firm-level Investment in Indonesia," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 62-85, February.

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