Export Growth and Credit Constraints
|Title:||Export Growth and Credit Constraints|
|Publication Date:||August 2014|
We investigate the eﬀect of credit constraints on the growth of exports at the micro level. We develop a stylized dynamic model showing 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 twelve 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.
|Ivan Allen College Contributors:|
|External Contributors:||Volodymyr Lugovskyy|
Besedes, Tibor, Byung-Cheol Kim, and Volodymyr Lugovskyy. "Export Growth and Credit Constraints." European Economic Review 70 (2014): 350-370.