Colombian international trade and its finance with local banks: A firm level analysis
DOI:
https://doi.org/10.17533/udea.le.n81a5Keywords:
Panel data, instrumental variables, international trade, creditAbstract
In this paper, we estimate the elasticity of exports and imports with respect to credit granted by commercial banks in Colombia using firm-level cross-section data. Replicating the methodology used in Paravisini et al. (2011), we found that a reduction in credit of 10% reduces the value exported and imported in 3.95% and 5.12%, and the volume in 2.33% and 3.63%, respectively. Instrumental variable panel data methodology is used to control for other factors affecting the demand for credit by firms.
Downloads
References
Amiti, Mary and Weinstein, David (2009). “Exports and Financial Shocks”, NBER Working Paper,15556. National Bureau of Economic Research.
Arellano, Manuel (2003). Panel Data Econometrics Advanced Texts in Econometrics. Oxford: Oxford University Press.
Baldwin, Richard and Krugman, Paul (1989). “Persistent Trade Effects of Large Exchange RateShocks”, The Quarterly Journal of Economics, Vol. 104, Issue 4, pp. 635-654.
Bernanke, Ben (1983). “Non Monetary Effects of the Financial Crisis in the Propagation of theGreat Depression”, The American Economic Review, Vol. 73, No. 3, pp. 257-276.
Bricongne, Jean-Charles; Fontagne, Lionel; Gaulier, Guillaume; Taglioni, Daria and Vicard, Vincent (2010). “Exports and sectoral financial dependence: evidence on French firms during the great global crisis”, Working Paper Series, No. 1227. European Central Bank.
Chaney, Thomas (2005). “Liquidity Constrained Exporters”, NBER Working Paper, No. 19170. National Bureau of Economic Research.
Chor, Davin and Manova, Kalina (2010). “Off the Cliff and Back? Credit Conditions and International Trade during the Global Financial Crisis”, NBER Working Paper, No. 16174. National Bureau of Economic Research.
Feenstra, Robert (1998). “Integration of Trade and Disintegration of Production in the Global Economy”, Journal of Economic Perspectives, Vol. 12, No. 4 (Fall) pp. 31–50.
Friedman, Milton and Schwarz, Anna (1963). Monetary History of the United States, 1867-1960. Princeton: Princeton University Press.
Iacovone, Leonardo and Zavacka, Veronika (2009). “Banking Crisis and Exports: Lessons from the Past”, Policy Research Working Paper, No. 5016. The World Bank.
Khwaja Asim and Mian, Atif (2008). “Tracing the Impact of Bank Liquidity Shocks: Evidence from an Emerging Market”. The American Economic Review, Vol. 98, No. 4, pp. 1413-1442.
Manova, Kalina (2008). “Credit constraints, heterogeneous firms, and international trade”, NBER Working Paper, No. 14531. National Bureau of Economic Research.
Melitz, Marc J. (2003) “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity”, Econometrica, Vol. 71, No. 6, pp. 1695-1725.
Paravisini, Daniel; Rappoport, Veronica; Schnabl, Philipp and Wolfenzon, Daniel (2011). “Dissecting the effect of Credit Supply on Trade: Evidence from Matched Credit-Export Data”, NBER Working Paper, No. 16975. National Bureau of Economic Research.
Roberts, Mark and Tybout, James (1999). “An Empirical Model of Sunk Costs and the Decision of Exports”, Policy Research Working Paper, No. 1436. The World Bank.
Published
How to Cite
Issue
Section
License
This page, by Universidad de Antioquia, is licensed under a Creative Commons Attribution License.
Authors who publish with this journal agree to retain copyright and grant the journal right of first publication, with the article licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License allowing others to share it as long as they acknowledge its authorship and original publication in this journal.
Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), provided that these arrangements be not for profit and the journal be acknowledged as the original source of publication.
Authors are permitted and encouraged to post their papers online (e.g., in institutional repositories or on their websites), as it can lead to valuable exchanges as well as greater citation of the published work.
