Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/230115 
Year of Publication: 
2020
Citation: 
[Journal:] The World Economy [ISSN:] 1467-9701 [Volume:] 43 [Issue:] 5 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2020 [Pages:] 1398-1433
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
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.
Subjects: 
credit constraints
distance
heterogeneous firms
product quality
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article
Document Version: 
Published Version

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