The role of credit constraints on firms’ exporting and importing activities

David Aristei and Chiara Franco

Industrial and Corporate Change, 2014, vol. 23, issue 6, 1493-1522

Abstract: This article investigates the role of credit constraints on export, import, and two-way trade activities of European manufacturing firms. Using direct financial constraints indicators and accounting for endogeneity issues, we find that credit rationing significantly reduces both the probability of entering foreign markets and the intensive margins of trade. Empirical results also point out that the role of extra entry costs differs according to the location of foreign markets and to the type of imported goods and services. Conditional on trading in the European Union, rationing is not an obstacle to entering additional exporting and importing markets, even though two-way traders behave differently and are negatively affected by financial constraints when they enter non-EU markets.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://hdl.handle.net/10.1093/icc/dtu032 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:indcch:v:23:y:2014:i:6:p:1493-1522.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by Josef Chytry

More articles in Industrial and Corporate Change from Oxford University Press and the Associazione ICC Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().