Unger, Florian - In: Canadian Journal of Economics/Revue canadienne d'économique 54 (2021) 3, pp. 1206-1251
This paper analyzes the effects of credit frictions in a trade model where heterogeneous firms select both into exporting and into two types of external finance. While small producers face stronger credit frictions and rely on bank finance, large firms have access to cheaper bond finance. The...