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Export Growth and Credit Constraints

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

We investigate the effect of credit constraints on the growth of exports at the micro level. We develop a model showing 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 twelve European Union members and the U.S. support the model’s predictions: exports from more credit constrained exporters grow faster. Export growth rates decrease with duration and converge across countries. Larger initial export volume reduces subsequent growth. While an important force in early stages, the effect of credit constraints is not persistent.

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File URL: http://resources.cefig.eu/papers/export_growth_and_credit_constraints.pdf
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File URL: http://www.prism.gatech.edu/~tbesedes3/bkl-exportgrowth.pdf
File Function: November 2011 version
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Paper provided by Center for Firms in the Global Economy in its series CeFiG Working Papers with number 16.

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Date of creation: 16 Oct 2011
Date of revision: 16 Oct 2011
Handle: RePEc:cfg:cfigwp:16
Contact details of provider: Web page: http://cefig.eu/

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