Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7363851 | Journal of International Economics | 2018 | 54 Pages |
Abstract
This paper analyzes how bank credit affects foreign and domestic sales. We use Italian matched bank-firm data and exploit bank mergers and acquisitions as a novel instrument to establish a causal link. We find that shocks to the supply of bank credit induce exporters to decrease their export flows, without affecting their domestic sales. On the other hand, non-exporters react by reducing their domestic sales. We argue that these differences are not driven by the kind of flow, but by the kind of firm: exporters and non-exporters differ in how they can react when facing credit constraints.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ines Buono, Sara Formai,