Credit constraints, quality, and export prices: Theory and evidence from China

doi:10.1016/j.jce.2015.02.007

CORC > 上海财经大学 > 上海财经大学

	Credit constraints, quality, and export prices: Theory and evidence from China
	Fan, Haichao 1; Lai, Edwin L. -C.2; Li, Yao Amber 2
刊名	JOURNAL OF COMPARATIVE ECONOMICS
	2015-05
卷号	43 期号:2 页码:390-416
关键词	Credit constraints Quality sorting Credit access Credit needs Quality Export prices
ISSN号	0147-5967
DOI	10.1016/j.jce.2015.02.007
英文摘要	This paper presents theory and evidence from highly disaggregated Chinese data that tighter credit constrains force firms to produce lower quality. The paper modifies Melitz's (2003) model of trade with heterogeneous firms by introducing quality choice and credit constraints. The quality sorting model predicts that tighter credit constraints faced by a firm reduce its optimal prices due to its choice of lower-quality products. However, when quality cannot be chosen by a firm in an efficiency sorting model, there is an opposite prediction that prices increase as firms face tighter credit constraints. An empirical analysis using Chinese bank loans data and a merged sample of large trading firms based on Chinese firm-level data from the National Bureau of Statistics of China (NBSC) and Chinese customs data strongly supports quality sorting and confirms the mechanism of quality adjustment: firms optimally choose to produce lower-quality products when facing tighter credit constraints. Moreover, the predictions of the efficiency sorting model are supported by using quality-adjusted prices in regression analysis and by using quality variation across firms within the same product. Journal of Comparative Economics 43 (2) (2015) 390-416. School of International Business Administration, Shanghai University of Finance and Economics, Shanghai, China; The Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong, China. (C) 2015 Association for Comparative Economic Studies. Published by Elsevier Inc. All rights reserved.
WOS研究方向	Business & Economics
语种	英语
出版者	ACADEMIC PRESS INC ELSEVIER SCIENCE
WOS记录号	WOS:000355056200009
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/1546]
专题	上海财经大学
通讯作者	Li, Yao Amber
作者单位	1.Shanghai Univ Finance & Econ, Sch Int Business Adm, Shanghai, Peoples R China; 2.Hong Kong Univ Sci & Technol, Kowloon, Hong Kong, Peoples R China
推荐引用方式 GB/T 7714	Fan, Haichao,Lai, Edwin L. -C.,Li, Yao Amber. Credit constraints, quality, and export prices: Theory and evidence from China[J]. JOURNAL OF COMPARATIVE ECONOMICS,2015,43(2):390-416.
APA	Fan, Haichao,Lai, Edwin L. -C.,&Li, Yao Amber.(2015).Credit constraints, quality, and export prices: Theory and evidence from China.JOURNAL OF COMPARATIVE ECONOMICS,43(2),390-416.
MLA	Fan, Haichao,et al."Credit constraints, quality, and export prices: Theory and evidence from China".JOURNAL OF COMPARATIVE ECONOMICS 43.2(2015):390-416.