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The Review of Economic Studies· 2012Q1

Credit Constraints, Heterogeneous Firms, and International Trade

Kalina Manova

Short summary

Credit constraints reduce international trade by 20-25% through lower total output, with an additional trade-specific effect where one-third stems from fewer firms exporting and two-thirds from reduced exporter sales.

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Field: General Economics, Econometrics and Finance

General Economics, Econometrics and FinanceEconomics, Econometrics and Finance