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Credit Constraint Exports in Countries with Different Degrees of Contract Enforcement
Business and Economic Research
We theoretically consider firms' export decisions in a heterogeneous firm framework. The paper assumes firms have idiosyncratic productivity levels and are credit-constrained in the export market. Firms in different countries have different degrees of credit constraints. Because of imperfect financial markets, firms might not be able to get the financial support to export even although they are profitable enough from the foreign market. In a country with strong contract enforcement, firms aredoi:10.5296/ber.v7i1.10923 fatcat:lz4hywdfgrcmrnt3a6x4qp7ndi