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Time-Varying Impacts of Financial Credits on Firm Exports: Evidence from Trade Deregulation in China

Author

Listed:
  • Cheng, Dong
  • Hu, Zhongzhong
  • Tan, Yong

Abstract

This paper investigates the heterogeneous and time-varying effects of financial credits on firm-level export performance. Using a data set covering comprehensive Chinese manufacturing firms and employing a difference-in-differences approach, we find that financial credits improve firm-level exports and productivity more for firms switching from indirect to direct export than continuing indirect exporting firms. Further, we employ a difference-in-difference-in-differences approach and find that improvements in firm-level finance have larger positive impacts on firm export values in the post-WTO accession period, conditioning on the firm switching from indirect to direct exporting. The time-varying impact may suggest an export distortion in China before its WTO accession.

Suggested Citation

  • Cheng, Dong & Hu, Zhongzhong & Tan, Yong, 2017. "Time-Varying Impacts of Financial Credits on Firm Exports: Evidence from Trade Deregulation in China," MPRA Paper 80657, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:80657
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    File URL: https://mpra.ub.uni-muenchen.de/81812/2/MPRA_paper_80657.pdf
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    References listed on IDEAS

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    Cited by:

    1. Cheng, Dong & Tan, Yong & Yu, Jian, 2017. "Credit Rationing and Firm Exports: Micro Evidence from SMEs in China," MPRA Paper 81914, University Library of Munich, Germany.

    More about this item

    Keywords

    Financial Credits; WTO Accession; Indirect export; Direct Export; Difference-in-Differences;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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