Credit Relationships in the Great Trade Collapse. Micro Evidence From Europe

34 Pages Posted: 9 Dec 2014 Last revised: 30 Mar 2018

See all articles by Giovanni Ferri

Giovanni Ferri

LUMSA University

Raoul Minetti

Michigan State University - Department of Economics

Pierluigi Murro

LUISS Guido Carli University - Department of Business and Management

Date Written: March 5, 2018

Abstract

Using a rich sample of small and medium-sized European firms, we study how banks' lending technologies affected firms' export activities during the 2009 great trade collapse. We find that bank-firm relationships mitigated the contraction of firms' export by easing banks' access to inside, "soft" information on export prospects. However, relationship banks with strong past experience on firms' domestic activities were less inclined to protect exporters. Bank-firm relationships appear to be a buffer especially for young and small exporters and for exporters at an early stage of internationalization.

Keywords: Financial crisis, Export, Lending technologies

Suggested Citation

Ferri, Giovanni and Minetti, Raoul and Murro, Pierluigi, Credit Relationships in the Great Trade Collapse. Micro Evidence From Europe (March 5, 2018). Available at SSRN: https://ssrn.com/abstract=2535881 or http://dx.doi.org/10.2139/ssrn.2535881

Giovanni Ferri

LUMSA University ( email )

Via della Traspontina
Roma, Rome 00192
Italy

HOME PAGE: http://www.lumsa.it/giovanni-ferri

Raoul Minetti

Michigan State University - Department of Economics ( email )

101 Marshall Hall
East Lansing, MI 48824
United States
517-355-7349 (Phone)
517-432-1068 (Fax)

Pierluigi Murro (Contact Author)

LUISS Guido Carli University - Department of Business and Management ( email )

Via Salvini, 3
Rome, 00198
Italy

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