Export Growth and Credit Constraints

Title: Export Growth and Credit Constraints
Format: Journal Article
Publication Date: August 2014
Published In: European Economic Review

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.

  • International Trade
Related Links:
Related File: BKL_14.pdf
Related Departments:
  • School of Economics