How do firms’ credit constraint affect their export mode choices between direct exporting and indirect exporting through intermediaries? This study explores this issue in a heterogeneous firm model where firms differ not only in productivity but also in credit levels. Our model predicts that...

We empirically investigate the impact of product quality information asymmetry on firm exports and the sectoral composition of multinational corporation activities. Using Chinese customs data, we find robust evidence that foreign firms perform better than domestic firms in information intensive...