Credit Constraints and Margins of Import: First Evidence for German Manufacturing Enterprises

Research output: Contributions to collected editions/worksChapterpeer-review

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 languageEnglish
Title of host publicationMicroeconometrics of International Trade
EditorsJoachim Wagner
Number of pages30
PublisherWorld Scientific Publishing Co.
Publication date01.07.2016
Pages423-452
ISBN (print)9789813109681
ISBN (electronic)9789813109698, 978-981-3109-70-4
DOIs
Publication statusPublished - 01.07.2016

Bibliographical note

Publisher Copyright:
© 2016 by World Scientific Publishing Co. Pte. Ltd.

    Research areas

  • Credit constraints, Germany, imports

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