Bank Credit and Exports
Veronica Rappaport
LSE
How does bank credit affect the economic activities of firms, particularly in relation to their export activities? This lecture aims to present an overview of empirical key findings on this subject, encompassing the following key aspects:
- the influence of credit availability as a determinant of comparative advantage
- estimating the elasticity of exports to credit shocks
- the role of trade-related financial instrument
- the expertise of banks in providing lending support tailored to specific economic activities or export markets.
Throughout the analysis of these topics, we will delve into various empirical strategies employed to identify the underlying mechanisms at work.