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Firms and the global crisis: French exports in the turmoil

Listed author(s):
  • Jean-Charles Bricongne

    (Centre de recherche de la Banque de France - Banque de France)

  • Lionel Fontagné

    ()

    (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne, PSE - Paris School of Economics, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique)

  • Guillaume Gaulier

    (Centre de recherche de la Banque de France - Banque de France)

  • Daria Taglioni

    (World Bank - Development Economics Research Group - World Bank)

  • Vincent Vicard

    ()

    (Centre de recherche de la Banque de France - Banque de France, PSE - Paris School of Economics)

Global trade contracted quickly and severely during the global crisis. This paper uses a unique dataset of French firms to match export data to firm-level credit constraints and shows that most of the 2008-2009 trade collapse was due to the unprecedented demand shock and to product characteristics. While all firms have been affected by the crisis, the effect on large firms has been mainly at the intensive margin and has resulted in a smaller portfolio of products being offered to export destinations. The effect on smaller exporters has been to reduce the range of destinations served or to stop exporting altogether. Credit constraints have been an added aggravation for firms active in high financial dependence sectors. However, the share of credit constrained firms is small and their number has not increased hugely during the crisis, with the result that the overall impact of credit constraints on trade has been limited.

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File URL: https://hal.archives-ouvertes.fr/hal-01299846/document
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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-01299846.

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Date of creation: 2012
Publication status: Published in Journal of International Economics, Elsevier, 2012, 87 (1), pp.134-146. <10.1016/j.jinteco.2011.07.002>
Handle: RePEc:hal:cesptp:hal-01299846
DOI: 10.1016/j.jinteco.2011.07.002
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01299846
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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