Exporters, Importers and Credit Constraints

By Mirabelle Muûls. 2015

246 citations recorded by the source corpus.

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.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/54d069734c4f2a16f9ab72bf588a999d278b9a48

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Alan C. Spearot
2. Jesse Mora
3. Federico J. Díez

In Economics and Econometrics

1. Alan C. Spearot
2. Jesse Mora
3. Federico J. Díez

In Strategy and Management

1. Alan C. Spearot
2. Jesse Mora
3. Federico J. Díez

Citations in the corpus

• Firms in international trade (2016, background): “For example, Muûls (2015) finds that among Belgian firms, credit ratings are correlated with exporter (and importer) status and exported (and imported) values.”