Export Growth and Credit Constraints

45 Pages Posted: 9 Oct 2011 Last revised: 10 Mar 2015

See all articles by Tibor Besedes

Tibor Besedes

Georgia Institute of Technology

Byung-Cheol Kim

University of Alabama

Volodymyr Lugovskyy

Indiana University Bloomington - Department of Economics

Date Written: May 2, 2014

Abstract

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.

Keywords: export growth, credit constraints

JEL Classification: F12, F14

Suggested Citation

Besedes, Tibor and Kim, Byung-Cheol and Lugovskyy, Volodymyr, Export Growth and Credit Constraints (May 2, 2014). European Economic Review, Vol. 70, 2014, Available at SSRN: https://ssrn.com/abstract=1940753 or http://dx.doi.org/10.2139/ssrn.1940753

Tibor Besedes (Contact Author)

Georgia Institute of Technology ( email )

221 Bobby Dodd Way
Atlanta, GA 30332-0615
United States

Byung-Cheol Kim

University of Alabama ( email )

Culverhouse College of Business
Tuscaloosa, AL 35487-0223
United States
7708462727 (Phone)
7708462727 (Fax)

HOME PAGE: http://https://sites.google.com/site/byungcheolkim76/

Volodymyr Lugovskyy

Indiana University Bloomington - Department of Economics ( email )

Wylie Hall
Bloomington, IN 47405-6620
United States

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