Exporters, importers and credit constraints
File(s)
Published version
Author(s)
Muuls, M
Type
Journal Article
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.
Date Issued
2015-03
Date Acceptance
2014-12-12
Citation
Journal of International Economics, 2015, 95 (2), pp.333-343
ISSN
1873-0353
Publisher
Elsevier
Start Page
333
End Page
343
Journal / Book Title
Journal of International Economics
Volume
95
Issue
2
Copyright Statement
Copyright © 2014 The Author. This is an open access article under the CC BY license
(http://creativecommons.org/licenses/by/4.0/).
(http://creativecommons.org/licenses/by/4.0/).
License URL
Identifier
http://www.sciencedirect.com/science/article/pii/S0022199614001482#
Publication Status
Published
Article Number
CEPDP1169
Date Publish Online
2014-12-29