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Travel Visas and Trade Finance

Author

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  • Veysel Avsar

    (Texas A&M University Corpus Christi)

Abstract

We examine the impact of Turkey's removal of visa policies on trade finance using cross-country cross-industry payments data on international transactions. Exploiting the variation in visa requirements across countries and over time, we find that the removal of visa barriers significantly increases exporter-financed trade to Turkey. Our results suggest that easier personal interactions between global business partners as a result of liberal visa policies help them build trust and make it easier for them to monitor transactions and mitigate credit risks.

Suggested Citation

  • Veysel Avsar, 2020. "Travel Visas and Trade Finance," Economics Bulletin, AccessEcon, vol. 40(1), pages 567-573.
    • Handle: RePEc:ebl:ecbull:eb-19-00894
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Trade finance; travel visas; open account; method of payments in international trade; payment choice;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F3 - International Economics - - International Finance

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