Credit constraints and margins of import: first evidence for German manufacturing enterprises
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Authors
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.
Original language | English |
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Journal | Applied Economics |
Volume | 47 |
Issue number | 5 |
Pages (from-to) | 415-430 |
Number of pages | 16 |
ISSN | 0003-6846 |
DOIs | |
Publication status | Published - 26.01.2015 |
- Economics
- credit constraints, Germany, imports