TY - UNPB

T1 - Credit constraints and margins of import

T2 - First evidence for German manufacturing enterprises

AU - Wagner, Joachim

PY - 2014

Y1 - 2014

N2 - This study uses tailor made enterprise level data from various sources for firms from manufacturing industries to test for the link between credit constraints, measured by a credit rating score provided by a leading credit rating agency, and imports in Germany for the first time. We find empirical evidence that a better credit rating score is positively related to extensive margins of import – firms with a better score have a higher probability to import, they import more goods and they source from more countries of origin. The intensive margin of imports – the share of imports in total sales – is found not to be related to credit constraints.

AB - This study uses tailor made enterprise level data from various sources for firms from manufacturing industries to test for the link between credit constraints, measured by a credit rating score provided by a leading credit rating agency, and imports in Germany for the first time. We find empirical evidence that a better credit rating score is positively related to extensive margins of import – firms with a better score have a higher probability to import, they import more goods and they source from more countries of origin. The intensive margin of imports – the share of imports in total sales – is found not to be related to credit constraints.

KW - Economics

KW - credit constraints

KW - imports

KW - Germany

M3 - Working papers

T3 - University of Lüneburg Working Paper Series in Economics

BT - Credit constraints and margins of import

PB - Institut für Volkswirtschaftslehre der Universität Lüneburg

CY - Lüneburg

ER -