Firm Exports and Multinational Activity Under Credit Constraints
Abstract
This paper provides firm-level evidence that credit constraints restrict international trade flows and affect the pattern of foreign direct investment. Using detailed data from China, we show that foreign-owned affiliates and joint ventures have better export performance than private domestic firms, and that this advantage is systematically greater in sectors at higher levels of financial vulnerability measured in a variety of ways. These...
Paper Details
Title
Firm Exports and Multinational Activity Under Credit Constraints
Published Date
Jan 1, 2009
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