%0 Journal Article
%@ 1530-9142
%A Manova, K
%A Wei, S-J
%A Zhang, Z
%D 2015
%F discovery:10043004
%J The Review of Economics and Statistics
%N 3
%P 574-588
%T Firm Exports and Multinational Activity Under Credit Constraints
%U https://discovery.ucl.ac.uk/id/eprint/10043004/
%V 97
%X We provide firm-level evidence that credit constraints restrict  international trade and affect the pattern of multinational activity. We  show that foreign affiliates and joint ventures in China have better export  performance than private domestic firms in financially more vulnerable  sectors. These results are stronger for destinations with higher trade costs  and not driven by firm size or other sector characteristics. Our findings  are consistent with multinational subsidiaries being less liquidity constrained  because they can access foreign capital markets or funding from  their parent company. They further suggest that FDI can alleviate the  impact of domestic financial market imperfections on trade.
%Z This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions.