Credit Constraints, International Trade Cost Change, and Export: Firm-Level Evidence

2014 ◽  
Author(s):  
Xiao Wang
Keyword(s):  
International Trade ◽  
Credit Constraints ◽  
Trade Cost ◽  
Firm Level

scholarly journals Trade credit, trade income elasticity and the international transmission of shocks

2021 ◽  
Author(s):  
Anna Watson
Keyword(s):  
International Trade ◽  
Open Economy ◽  
Trade Credit ◽  
Income Elasticity ◽  
Heterogeneous Firms ◽  
Firm Level ◽  
Macroeconomic Shocks ◽  
Cyclical Fluctuations ◽  
Irish Data ◽  
The Impact

AbstractThe paper examines the impact of trade credit on cyclical fluctuations in international trade. It provides new empirical evidence based on firm-level UK and Irish data showing that exporters use trade credit more actively and intensively than non-exporters. The study introduces inter-firm lending into an open economy general equilibrium model with heterogeneous firms and endogenous entry into the exports market. It demonstrates that trade credit amplifies the impact of macroeconomic shocks on international trade both along the intensive and extensive margins and that it significantly contributes to the high trade income elasticity observed in the data.

scholarly journals Credit constraints and exports: a survey of empirical studies using firm-level data

2014 ◽  
Vol 23 (6) ◽  
pp. 1477-1492 ◽  
Author(s):  
J. Wagner
Keyword(s):  
Credit Constraints ◽  
Empirical Studies ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data

scholarly journals Payment Choice in International Trade: Theory and Evidence from Cross-Country Firm Level Data

2013 ◽  
Author(s):  
Andreas Hoefele ◽  
Tim Schmidt-Eisenlohr ◽  
Zhihong Yu
Keyword(s):  
International Trade ◽  
Trade Theory ◽  
Firm Level ◽  
International Trade Theory ◽  
Level Data ◽  
Firm Level Data ◽  
Cross Country

scholarly journals A microanalysis of trade finance: German bank entry and coffee exports in Brazil, 1880–1913

2019 ◽  
Vol 24 (2) ◽  
pp. 356-389
Author(s):  
Wilfried Kisling
Keyword(s):  
Historical Perspective ◽  
Credit Constraints ◽  
Original Data ◽  
Firm Level ◽  
Data Set ◽  
Trade Finance ◽  
German Bank ◽  
Level Data ◽  
Economic Studies ◽  
Bank Entry

Abstract The trade-finance nexus has enjoyed increasing interest in recent economic studies, but empirical evidence is scarce and studies from a historical perspective seem missing. This study analyses the effect of German bank entry on Brazilian coffee exports between 1880 and 1913 using firm-level data. I create an original data set on the yearly quantities of exported coffee and the credit received from the German Brasilianische Bank für Deutschland by export houses in Brazil. Using a difference-in-difference approach, I find that Brasilianische eased previously existing credit constraints, and that companies financed by Brasilianische exported significantly more than those that were not.

scholarly journals Empowering Cities: Good for Growth? Evidence from the People's Republic of China

2018 ◽  
Vol 35 (1) ◽  
pp. 175-195
Author(s):  
Megha Mukim ◽  
T. Juni Zhu
Keyword(s):  
Gross Domestic Product ◽  
Local Governments ◽  
Credit Constraints ◽  
High Capacity ◽  
Economic Outcomes ◽  
Firm Level ◽  
Access To Credit ◽  
Republic Of China ◽  
Firm Outcomes ◽  
Local Leaders

This paper utilizes a countrywide process of county-to-city upgrading in the 1990s to identify whether extending the powers of urban local governments leads to better firm outcomes. The paper hypothesizes that since local leaders in newly promoted cities have an incentive to utilize their new administrative remit to maximize gross domestic product and employment, there should be improvements in economic outcomes. In fact, aggregate firm-level outcomes do not necessarily improve after county-to-city graduation. However, state-owned enterprises perform better after graduation, with increased access to credit through state-owned banks as a possible explanation. Importantly, newly promoted cities with high capacity generally produce better aggregate firm outcomes compared with newly promoted cities with low capacity. The conclusions are twofold. First, relaxing credit constraints for firms could lead to large increases in their operations and employment. Second, increasing local government's administrative remit is not enough to lead to better firm and economic outcomes; local capacity is of paramount importance.

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