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Dissecting the Effect of Credit Supply on Trade: Evidence from Matched Credit-Export Data / Daniel Paravisini, Veronica Rappoport, Philipp Schnabl, Daniel Wolfenzon.
- Format:
- Book
- Author/Creator:
- Paravisini, Daniel.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w16975.
- NBER working paper series no. w16975
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Dissecting the Effect of Credit Supply on Trade
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2011.
- Summary:
- We estimate the elasticity of exports to credit using matched customs and firm-level bank credit data from Peru. To account for non-credit determinants of exports, we compare changes in exports of the same product and to the same destination by firms borrowing from banks differentially affected by capital-flow reversals during the 2008 financial crisis. We find that credit shocks affect the intensive margin of exports, but have no significant impact on entry or exit of firms to new product and destination markets. Our results suggest that credit shortages reduce exports through raising the variable cost of production, rather than the cost of financing sunk entry investments.
- Notes:
- Print version record
- April 2011.
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