Credit constraints and margins of import: First evidence for German manufacturing enterprises
Research output: Working paper › Working papers
Authors
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.
Original language | English |
---|---|
Place of Publication | Lüneburg |
Publisher | Institut für Volkswirtschaftslehre der Universität Lüneburg |
Number of pages | 33 |
Publication status | Published - 2014 |
- Economics - credit constraints, imports, Germany