Export growth and credit constraints

•We model the effect of credit constraints on the growth of exports.•The model shows that more credit constrained exporters should grow faster.•More credit constrained exporters to the U.S. and EU members do grow faster.•Export growth rates decrease with duration and converge across countries.•The effect of credit constraints decreases with duration of exporting.

We investigate the effect of credit constraints on the growth of exports at the micro level. We develop a stylized dynamic model showing that credit constraints play a key role in early stages of exporting, but not in later stages. Our empirical results using product level data on exports to 12 European Union members and the U.S. support the model׳s predictions: exports from more credit constrained and riskier exporters grow faster. Export growth rates decrease with duration and converge across countries. While an important force in early stages credit constraints affect export growth much less as the duration of exports increases.