Credit and exports: lessons from micro-level data

Banu Demir and Veronica Rappoport

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This article reviews recent evidence on how credit availability shapes exports. Advances in empirical strategies and the increasing availability of detailed firm- and transaction-level data shed light on mechanisms linking firms’ financial conditions to their entry, survival, and growth in export markets. Emerging work on the interaction between bank and trade credit highlights additional channels affecting export contracts. We conclude by outlining open questions and directions for future research.

Keywords: trade finance; credit constraints; exports; letters of credit; trade credit; global value chains (search for similar items in EconPapers)
JEL-codes: F14 F40 G21 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2026-06-09
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Published in Annual Review of Economics, 9, June, 2026. ISSN: 1941-1383

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