IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v22y2015i12p993-998.html
   My bibliography  Save this article

Trade credit, international trade costs and exports: cross-country firm-level evidence

Author

Listed:
  • Xiao Wang

Abstract

This article finds that firms' trade credit, the financing provided by upstream input suppliers along the supply chain, plays an important role in determining firms' exportation. In a panel data set of manufacturing firms in 25 Eastern European and Central Asian countries between 2001 and 2007, we employ international trade cost shocks to identify the causal impacts of trade credit on firms' exportation. We find that when trade costs decline, firms with less trade credit increase their exports disproportionately more because of the alleviation of their financing burdens. Results are robust after controlling for bank and other financing channels, country financial development, and the endogeneity of trade credit. Our findings contribute to the empirical identification of financial frictions on firms' exports and to the role of trade credit on firms' performance.

Suggested Citation

  • Xiao Wang, 2015. "Trade credit, international trade costs and exports: cross-country firm-level evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 22(12), pages 993-998, August.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:12:p:993-998
    DOI: 10.1080/13504851.2014.995353
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2014.995353
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2014.995353?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Onkar Shivraj Swami & B. Nethaji & Jyoti Prakash Sharma, 2022. "Determining Risk Factors that Diminish Asset Quality of Indian Commercial Banks," Global Business Review, International Management Institute, vol. 23(2), pages 372-384, April.
    2. Thomas Url, 2016. "Gesamtwirtschaftliche Auswirkungen der Exportgarantien in Österreich," WIFO Studies, WIFO, number 58839, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:22:y:2015:i:12:p:993-998. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.