Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
We examine the impact of destination trade credit (DTC) on exports, using cross-country panel data for 2000–2018 and focusing on financing by foreign trade partners. We find DTC promotes a country’s exports disproportionately more in liquidity-dependent industries, a consistent result after addressing endogeneity and various robustness tests. DTC mainly promotes trade by increasing export quantity, while lowering export prices and export varieties. Further, the effect is greater if the level of financial development of the source country is lower, but smaller if the product complexity of industries is higher. During the 2008 global financial crisis, DTC also contributes to export expansion, but the effect is relatively small.