Feenstra, Robert C.; Li, Zhiyuan; Yu, Miaojie - In: The Review of Economics and Statistics 96 (2014) 3, pp. 729-744
This paper examines why credit constraints for domestic and exporting firms arise in a setting where banks do not observe firms' productivities. To maintain incentive compatibility, banks lend below the amount that firms need for optimal production. The longer time needed for export shipments...