An empirical analysis of interest rates and exports under imperfect credit markets

Abstract

This article studies the empirical relationship between interest rates and exports under imperfect credit markets. Our findings show that a well-developed credit market with ample credits has a positive effect on exports and interest rates exert a negative effect on exports. In particular, we find that in a well-developed credit market with ample credits, interest rates have a stronger negative effect on the exports.

Keywords:

• exports
• interest rates
• private credit
• imperfect credit market

JEL Classification:

• F1
• F4
• G3

Additional information

Funding

This research is supported by Renmin University of China [grant number 12XNF015], [grant number 12XNK018].