CREDIT CONSTRAINTS, ENDOGENOUS INNOVATIONS, AND PRICE SETTING IN INTERNATIONAL TRADE

• 成果类型: Article
• 署名作者: Eckel, Carsten; Unger, Florian
• 署名单位: University of Munich; Leibniz Association; Ifo Institut; Centre for Economic Policy Research - UK; University of Gottingen
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12651
• 发表日期: 2023
• 页码: 1715-1747
• 关键词: Heterogeneous firms; financial frictions; export prices; QUALITY; product; LIBERALIZATION; imperfections; misallocation; EFFICIENCY; selection

摘要

This article analyzes the role of credit frictions in a trade model where producers differ in their capabilities to conduct process and quality innovations and require external finance for investments. Accounting for cost-based and quality-based sorting of firms in a unified framework allows us to demonstrate that the reactions of prices and commonly used productivity measures do not necessarily reflect welfare implications. Credit frictions lead to distortions through aggravated access to finance and endogenous price adjustments so that the responses of quantity-based and revenue-based productivity differ substantially. In counterfactual scenarios, we show that these differential effects are quantitatively important.