Francesco Bripi (Banca d'Italia) on "Services Trade and Credit Frictions: Evidence with Matched Bank-firm Data"

Speaker:  Francesco Bripi - Banca d'Italia
  Wednesday, January 27, 2016 at 12:00 PM Polo Santa Marta, Via Cantarane 24, Stanza 1.59
This paper investigates the relationship between bank credit and services exports of Italian firms during the sovereign debt crisis. In order to identify the role of the credit constraints on services exports we use matched data of bank-firm relationships and the shocks affecting banks‟ foreign funding during the crisis. The estimates suggest that credit constraints had a significant impact on the intensive margin of services exports: a bank credit reduction of 1% induces a fall in export flows by almost 0.5%. The results are robust to alternative definitions of the instrumental variable and to the inclusion of various firm observed and unobserved shocks.

Programme Director
Filippo Pavesi

External reference
Luca Zarri

Publication date
August 24, 2015