Export growth and credit constraints

Tibor Besedes, Byung-Cheol Kim and Volodymyr Lugovskyy

European Economic Review, 2014, vol. 70, issue C, 350-370

Abstract: We investigate the effect of credit constraints on the growth of exports at the micro level. We develop a stylized dynamic model showing that credit constraints play a key role in early stages of exporting, but not in later stages. Our empirical results using product level data on exports to 12 European Union members and the U.S. support the model׳s predictions: exports from more credit constrained and riskier exporters grow faster. Export growth rates decrease with duration and converge across countries. While an important force in early stages credit constraints affect export growth much less as the duration of exports increases.

Keywords: Export growth; Credit constraints (search for similar items in EconPapers)
JEL-codes: F12 F14 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (25)

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Working Paper: Export Growth and Credit Constraints (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:70:y:2014:i:c:p:350-370

DOI: 10.1016/j.euroecorev.2014.05.001

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