The heterogeneous response of domestic sales and exports to bank credit shocks

Ines Buono and Sara Formai ()
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Sara Formai: Bank of Italy

No 1066, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper analyzes the role of bank credit in firms' export performance. We use Italian bank-firm matched data and contribute to the existing literature by focusing on the link between bank-credit and exports in ‘normal times’ (1997-2008) and measuring access to credit with hard data on the credit actually extended to firms by the banking system. We also establish the causal link that goes from bank credit to exports, exploiting bank mergers and acquisitions as a source of bank credit supply shocks. We find that short-run shocks to the supply of bank credit induce exporters to decrease their export flows, without affecting their domestic sales. On the other hand, non-exporters react by reducing their domestic sales.

Keywords: export; bank lending channel; credit shocks; mergers and acquisitions (search for similar items in EconPapers)
JEL-codes: F14 G21 G34 (search for similar items in EconPapers)
Date: 2016-06
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-eur and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The heterogeneous response of domestic sales and exports to bank credit shocks (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1066_16

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