Exporters, importers and credit constraints

Mirabelle Muûls ()

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

Abstract: This paper analyzes the interaction between credit constraints and trading behavior, decomposing trade in extensive and intensive margins. I construct a unique dataset containing firm-level trade transaction data, balance sheets and credit scores from an independent credit insurance company for Belgian manufacturing firms between 1999 and 2007. Firms are more likely to be exporting or importing if they enjoy lower credit constraints. Also, firms that have better credit rating export and import more. Importing and exporting behaviors differ in how both the level and growth of the various margins of trade are related to credit constraints in one important dimension. In the case of exports, it is the intensive and extensive margins of exports in terms of both product and destinations that are significantly associated with credit constraints whereas for imports it is the extensive margin in terms of products only.

Keywords: credit constraints; international trade; firms' heterogeneity; imports; exports; margins of trade (search for similar items in EconPapers)
JEL-codes: F10 F14 G20 (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (81)

Published in Journal of International Economics, March, 2015, 95(2), pp. 333-343. ISSN: 0022-1996

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Related works:
Journal Article: Exporters, importers and credit constraints (2015)
Working Paper: Exporters, Importers and Credit Constraints (2012)
Working Paper: Exporters, importers and credit constraints (2012)
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