Credit constraints, endogenous innovations, and price setting in international trade

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

This article analyzes the role of credit frictions in a trade model where producers differ in their capabilities to conduct process and quality innovations and require external finance for investments. Accounting for cost-based and quality-based sorting of firms in a unified framework allows us to demonstrate that the reactions of prices and commonly used productivity measures do not necessarily reflect welfare implications. Credit frictions lead to distortions through aggravated access to finance and endogenous price adjustments so that the responses of quantity-based and revenue-based productivity differ substantially. In counterfactual scenarios, we show that these differential effects are quantitatively important.

OriginalspracheEnglisch
ZeitschriftInternational Economic Review
Jahrgang64
Ausgabenummer4
Seiten (von - bis)1715-1747
Anzahl der Seiten33
ISSN0020-6598
DOIs
PublikationsstatusErschienen - 11.2023
Extern publiziertJa

Bibliographische Notiz

Funding Information:
Open access funding enabled and organized by Projekt DEAL.

Publisher Copyright:
© 2023 The Authors. International Economic Review published by Wiley Periodicals LLC on behalf of the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

DOI

Zuletzt angesehen

Publikationen

  1. Effect of laser peen forming process parameters on bending and surface quality of Ti-6Al-4V sheets
  2. Non-native Douglas fir promotes epigeal spider density, but has a mixed effect on functional diversity
  3. Effects on the (CSR) Reputation
  4. Grausamer Optimismus
  5. The untapped potential of Games for Health in times of crises. A critical reflection
  6. Skill learning as a concept in life-span developmental psychology
  7. Minimalist Training
  8. Hidden in full view
  9. Note on the Lingen case
  10. Analysis of Kinetic Dynamics of the Multipole Resonance Probe
  11. Academia's obsession with quantity
  12. Behind the Scenes of Automation
  13. Community resilience for a 1.5 degrees C world
  14. The Development of Civil Societies
  15. Joseph Heller
  16. Rent Control, Market Segmentation, and Misallocation: Causal Evidence from a Large-Scale Policy Intervention
  17. Work in Progres Work on Progress
  18. Unfreiwillige Mitarbeit
  19. Resilience or vulnerability? Vegetation patterns of a Central Tibetan pastoral ecotone
  20. The most frequent phrasal verbs in English language EU documents - A corpus-based analysis and its implications
  21. Sustainable digitalization – fostering the twin transformation in a transdisciplinary way
  22. Effectiveness of a web-based intervention for injured claimants
  23. Effects of facebook activities on the performance of start-ups
  24. Exploring the potential of SMEs to build individual, organizational, and community resilience through sustainability-oriented business practices
  25. Using gender theories to analyse nature resource management
  26. Ecosystem services as a boundary object for sustainability
  27. Impact of tree diversity and environmental conditions on the survival of shrub species in a forest biodiversity experiment in subtropical China
  28. Innovative approaches in mathematical modeling
  29. Leßmann, Daniel
  30. Consequences, morality, and time in environmental risk evaluation
  31. Seth Price. Decimating Digital Data