TY - JOUR

T1 - Credit constraints and margins of import

T2 - first evidence for German manufacturing enterprises

AU - Wagner, Joachim

PY - 2015/1/26

Y1 - 2015/1/26

N2 - This study uses tailor-made enterprise-level data for 2008–2010 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 for 2008–2010 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 - Germany

KW - imports

UR - http://www.scopus.com/inward/record.url?scp=84914671072&partnerID=8YFLogxK

U2 - 10.1080/00036846.2014.969829

DO - 10.1080/00036846.2014.969829

M3 - Journal articles

VL - 47

SP - 415

EP - 430

JO - Applied Economics

JF - Applied Economics

SN - 0003-6846

IS - 5

ER -