Artikel

Export quality differentiation under credit constraints

This paper studies the effect of credit constraints on the choice by small and medium-sized enterprises to export goods of higher quality relative to their domestically sold output (quality differentiation). The empirical analysis employs detailed firm-level data on product characteristics and credit scores. Credit constraints are found to be negatively associated with export quality differentiation. Firms reporting a deterioration of the credit score by a standard deviation are 36% less likely to pursue quality differentiation. The negative relation between credit constraints and quality differentiation is stronger for firms exporting to distant markets.

Language
Englisch

Bibliographic citation
Journal: The World Economy ; ISSN: 1467-9701 ; Volume: 43 ; Year: 2020 ; Issue: 5 ; Pages: 1398-1433 ; Hoboken, NJ: Wiley

Classification
Wirtschaft
Subject
credit constraints
distance
heterogeneous firms
product quality

Event
Geistige Schöpfung
(who)
Ciani, Andrea
Bartoli, Francesca
Event
Veröffentlichung
(who)
Wiley
(where)
Hoboken, NJ
(when)
2020

DOI
doi:10.1111/twec.12938
Handle
Last update
2025-03-10T11:42:36+0100

Data provider

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Object type

  • Artikel

Associated

  • Ciani, Andrea
  • Bartoli, Francesca
  • Wiley

Time of origin

  • 2020

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