Off the Cliff and Back? Credit Conditions and International Trade during the Global Financial Crisis

• Main Authors: CHOR, Davin, MANOVA, Kalina
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: international trade; financial crisis; credit constraints; trade credit; Finance; International Business; International Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/1294; https://ink.library.smu.edu.sg/context/soe_research/article/2293/viewcontent/Off_the_Cliff_and_Back_wp_smu.pdf
• Institution: Singapore Management University

We study the collapse of international trade flows during the global financial crisis using detailed data on monthly US imports. We show that credit conditions were an important channel through which the crisis affected trade volumes, by exploiting the variation in the cost of capital across countri...