Series: Working Papers. 1901.
Author: Eduardo Gutiérrez and Enrique Moral-Benito.
Topics: Credit | International trade | Competitiveness | Quantitative methods | International Economy.
Published in: Review of International Economics, v. 32, Issue 3, August 2024, pp. 1149 - 1173
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Abstract
This paper explores the effects of bank lending shocks on export behavior of Spanish
firms. For that purpose, we combine Balance of Payments data on exports at the firm-product-
destination level with a matched bank-firm dataset incorporating information on the
universe of corporate loans from 2002 to 2013. Armed with this dataset, we identify bankyear
specific credit supply shocks following Amiti and Weinstein (2018) and estimate their
impact on firms’ exports at the product-destination level. According to our estimates, credit
supply shocks have sizable effects on both the intensive margin (amount exported) and the
extensive margin of trade (decision to export).