Abstract

http://ssrn.com/abstract=1786044
 
 

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Dissecting the Effect of Credit Supply on Trade: Evidence from Matched Credit-Export Data


Daniel Paravisini


London School of Economics & Political Science (LSE); Columbia Business School - Finance and Economics

Veronica Rappoport


London School of Economics & Political Science (LSE)

Philipp Schnabl


New York University (NYU) - Department of Finance; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Daniel Wolfenzon


Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER)

June 10, 2013


Abstract:     
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 obtain elasticity estimates for the intensive and extensive margins of exports, size and frequency of shipments, and the method of freight and payment. Our results suggest that the credit shortage reduces exports through raising the variable cost of production, rather than the cost of financing sunk entry investments.

Number of Pages in PDF File: 48

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Date posted: March 15, 2011 ; Last revised: June 10, 2013

Suggested Citation

Paravisini, Daniel and Rappoport, Veronica and Schnabl, Philipp and Wolfenzon, Daniel, Dissecting the Effect of Credit Supply on Trade: Evidence from Matched Credit-Export Data (June 10, 2013). Available at SSRN: http://ssrn.com/abstract=1786044 or http://dx.doi.org/10.2139/ssrn.1786044

Contact Information

Daniel Paravisini
London School of Economics & Political Science (LSE) ( email )
Houghton Street
London, WC2A 2AE
United Kingdom
Columbia Business School - Finance and Economics ( email )
3022 Broadway
New York, NY 10027
United States

Veronica Rappoport
London School of Economics & Political Science (LSE) ( email )
Houghton Street
London, WC2A 2AE
United Kingdom
Philipp Schnabl
New York University (NYU) - Department of Finance ( email )
Stern School of Business
44 West 4th Street
New York, NY 10012-1126
United States
HOME PAGE: http://pages.stern.nyu.edu/~sternfin/pschnabl/
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Daniel Wolfenzon (Contact Author)
Columbia Business School - Finance and Economics ( email )
3022 Broadway
New York, NY 10027
United States

National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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