Dissecting the Effect of Credit Supply on Trade: Evidence from Matched Credit-Export Data

Daniel Paravisini, Veronica Rappoport, Philipp Schnabl and Daniel Wolfenzon

No 16975, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We estimate the elasticity of exports to credit using matched customs and firm-level bank credit data from Peru. To account for non-credit determinants of exports, we compare changes in exports of the same product and to the same destination by firms borrowing from banks differentially affected by capital-flow reversals during the 2008 financial crisis. We find that credit shocks affect the intensive margin of exports, but have no significant impact on entry or exit of firms to new product and destination markets. Our results suggest that credit shortages reduce exports through raising the variable cost of production, rather than the cost of financing sunk entry investments.

JEL-codes: F10 F30 F40 G15 G21 G32 (search for similar items in EconPapers)
Date: 2011-04
New Economics Papers: this item is included in nep-ifn and nep-int
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Published as Daniel Paravisini & Veronica Rappoport & Philipp Schnabl & Daniel Wolfenzon, 2015. "Dissecting the Effect of Credit Supply on Trade: Evidence from Matched Credit-Export Data," Review of Economic Studies, Oxford University Press, vol. 82(1), pages 333-359.

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Related works:
Journal Article: Dissecting the Effect of Credit Supply on Trade: Evidence from Matched Credit-Export Data (2015)
Working Paper: Dissecting the effect of credit supply on trade: evidence from matched credit-export data (2015)
Working Paper: Dissecting the Effect of Credit Supply on Trade: Evidence from Matched Credit-Export Data (2011)
Working Paper: Dissecting the Effect of Credit Supply on Trade: Evidence from Matched Credit-Export Data (2010)
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