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Recent Melitz-type (2003) intra-industry heterogonous trade models argue that a firm's productivity has significant … effects on the firm's exports. This paper examines how a firm's credit constraints as well as its productivity affect its …
Persistent link: https://www.econbiz.de/10014204630
Persistent link: https://www.econbiz.de/10009298671
This paper presents theory and evidence that tighter credit constrains force firms to produce lower quality. The paper develops a quality sorting model that predicts that tighter credit constraints faced by a firm reduce its optimal prices due to its choice of lower-quality products. Conversely,...
Persistent link: https://www.econbiz.de/10011266157
its exports, as well as (ii) the relationship between the export prices of a firm and its productivity. The paper extends … Melitz's (2003) model of trade with heterogeneous firms by introducing endogenous quality, credit constraints and marketing … costs. There are three key findings. First, there exists a positive relationship between firm productivity and export prices …
Persistent link: https://www.econbiz.de/10011114390
-regulatory convergence has also contributed to the spur of cross-border financial transactions. Trade in goods, while highly correlated with …
Persistent link: https://www.econbiz.de/10011605262
Recent Melitz-type (2003) intra-industry heterogonous trade models argue that a firm's productivity has significant … effects on the firm's exports. This paper examines how a firms credit constraints as well as its productivity affect its …
Persistent link: https://www.econbiz.de/10009363394
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 needed for first-best production. The longer time needed for export shipments induces...
Persistent link: https://www.econbiz.de/10014043745
and trade to support recovering revenues rather than to continue cost cutting.Macro and Micro Dynamics of Trade, Finance … of management education primarily dealing with issues of economics, finance, banking, global trade & investment, WTO and …
Persistent link: https://www.econbiz.de/10013110884
This paper embeds a principal-agent firm in an otherwise standard trade model a la Melitz (2003) to investigate the … contractual frictions due to limited liability, firms with heterogeneous productivity endogenously sort into different pay … less productive firms use a lowered- powered one. International trade within an industry enhances market competition …
Persistent link: https://www.econbiz.de/10009220234
We develop a heterogeneous-firms model with trade in goods, labor mobility and credit constraints due to moral hazard … trade liberalization. While the former leads to more dispersion of economic activity across space, the latter tends to drive …
Persistent link: https://www.econbiz.de/10010291520