CEPII, Recherche et Expertise sur l'economie mondiale
Export Performance and Credit Constraints in China

Joachim Jarreau
Sandra Poncet

 Highlights :

 Abstract :
We investigate how the export performance of firms in China is influenced by credit constraints. Using panel data from Chinese customs for 1997-2007, we show that credit constraints restrict international trade flows and affect the sectoral composition of firms’ activity. We confirm that credit constraints provide an advantage to Foreign-owned firms and joint ventures over private domestic firms as their export performance is systematically greater in sectors with higher levels of financial vulnerability measured in a variety of ways. We however find that financial sector liberalization has partially reduced these distortions in exports over the period.

 Keywords : Export performance | Credit constraints | Financial liberalization | FDI

 JEL : F10, F14, F23, F36, G32
CEPII Working Paper
N°2010-33, December 2010

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 Fields of expertise

Emerging Countries