Inter‐Firm Trade Finance in Times of Crisis

Menichini, C.; Maria, Anna

doi:10.1111/j.1467-9701.2011.01390.x

Cited by 11 publications

(8 citation statements)

References 54 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Similarly, diagnostic tests support the instrumental-variable estimation of the TFP equations: p-values of Hansen's J-statistic are never significant; first-stage F-statistics on excluded instruments referring to the agglomeration variables have p-values equal to zero in all cases, thus suggesting a good predictive power of the chosen instruments; KLEIBERGEN and PAAP's (2006) rank statistic always rejects the null hypothesis that the matrix of reduced-form coefficients is under-identified, thus maintaining the instruments' relevance. Moreover, the mean variance inflation factor (VIF) is lower than the conservative cut-off value of 10 in all specifications, thus suggesting the absence of multicollinearity problems (NETER et al, 1985).…”

Section: Econometric Methodologymentioning

confidence: 99%

“…Being part of a highly agglomerated area may allow firms (partially) to overcome the negative effects of credit rationing thanks to inter-firm relationships, which materialize on both the productive and the financial sides. Production linkages may entail inter-firm credit relationships (CAINELLI et al, 2012), which represent an alternative, non-institutional channel through which firms can alleviate financial constraints (MENICHINI, 2011;FERRANDO and MULIER, 2013).…”

Section: Localization Economies and Productivitymentioning

confidence: 99%

See 1 more Smart Citation

Productivity, Credit Constraints and the Role of Short-Run Localization Economies: Micro-Evidence from Italy

Ganau

2015

Regional Studies

View full text Add to dashboard Cite

GANAU R. Productivity, credit constraints and the role of short-run localization economies: micro-evidence from Italy, Regional Studies. This paper investigates whether Italian manufacturing firms' productivity is affected by credit constraints, and whether short-run localization economies foster productivity both directly and indirectly, moderating the negative effects of credit rationing via inter-firm credit relationships. Results suggest a negative effect of credit rationing on firms' productivity, while a positive relationship exists between short-run localization economies and productivity. It emerges that location in an industrially concentrated area reduces firms' investment-to-cash flow sensitivity, and that it positively moderates the negative effect of credit rationing on productivity. Moreover, the positive moderation effect seems to be increasing in the density of the local banking system. Total factor productivityCredit rationing Localization economiesGANAU R. La productivité, les contraintes de crédit et le rôle des économies de localisation à court terme: des résultats micro-économiques provenant de l'Italie, Regional Studies. Cet article cherche à examiner si, oui ou non, la productivité des entreprises de fabrication italiennes est touchée par les contraintes de crédit, et si les économies de localisation à court terme favorisent la productivité à la fois directement et indirectement, modérant ainsi les effets négatifs du rationnement du crédit par moyen des relations de crédit interentreprises. Les résultats laissent supposer que le rationnement du crédit exerce un effet négatif sur la productivité des entreprises, alors qu'il existe une relation positive entre les économies de localisation à court terme et la productivité. Il s'avère que la localisation d'une entreprise dans une zone fortement industrialisée réduit la sensibilité de son investissement au cash-flow, et qu'il modère de façon positive l'effet négatif du rationnement du crédit sur la productivité. En outre, l'effet de modération positif semble augmenter, vu la densité du système bancaire local. Productivité totale des facteurs Rationnement du crédit Économies de localisation GANAU R. Produktivität, Kreditbeschränkungen und die Rolle von kurzfristigen Lokalisationsökonomien: Mikrobelege aus Italien, Regional Studies. In diesem Beitrag wird untersucht, ob die Produktivität von italienischen produzierenden Betrieben durch Kreditbeschränkungen beeinflusst wird und ob kurzfristige Lokalisationsökonomien die Produktivität sowohl unmittelbar als auch mittelbar fördern, indem sie die negativen Auswirkungen einer Kreditrationierung mithilfe von Kreditbeziehungen zwischen Firmen abschwächen. Die Ergebnisse lassen auf eine negative Auswirkung der Kreditrationierung auf die Produktivität der Firmen schließen, während zwischen kurzfristigen Lokalisationsökonomien und der Produktivität eine positive Beziehung besteht. Es stellt sich heraus, dass der Standort in einer industriell konzentrierten Gegend die Investitionen-Cashflow-Sensibilität der ...

show abstract

Section: Econometric Methodologymentioning

confidence: 99%

Section: Localization Economies and Productivitymentioning

confidence: 99%

Productivity, Credit Constraints and the Role of Short-Run Localization Economies: Micro-Evidence from Italy

Ganau

2015

Regional Studies

View full text Add to dashboard Cite

show abstract

“…Cross border trades face macro-level risks which could impact the value of return (e.g., exchange rate fluctuations, changes to policy) and the likelihood of default (e.g., conflict, political upheaval). In addition, they face specific counterparty risks linked to the greater difficulty of enforcement across borders, exacerbated in many developing countries by poorly functioning institutions, particularly legal systems (Menichini, 2009). Weak cross-border enforcement raises the risk of strategic default on the part of suppliers, creating a problem of "credible commitment" across borders (Ellingsen & Vlachos, 2009).…”

Section: The Economics Of Trade Financementioning

confidence: 99%

Trade Finance In Crisis: Market Adjustment Or Market Failure?

Chauffour¹,

Farole²

2009

Policy Research Working Papers

View full text Add to dashboard Cite

“…Several policy papers also discuss trade finance. See, for example, Menichini () and Ellingsen and Vlachos ().…”

mentioning

confidence: 99%

Payment choice in international trade: Theory and evidence from cross‐country firm‐level data

Hoefele¹,

Schmidt‐Eisenlohr

2016

Canadian J of Economics

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. When trading, firms choose between different payment contracts. As shown theoretically in Schmidt-Eisenlohr (forthcoming), this allows firms in international trade to optimally tradeoff differences in financing costs and enforcement across countries. This paper provides evidence from a large number of countries that shows that country characteristics are indeed central determinants of the payment contract choice. As predicted, the use of open account decreases in financing costs and contract enforcement in the source country. We extend the theory and test two additional predictions. First, we show that the more complex the industry of a firm, the more important is the quality of contract enforcement and the less important are the financing costs for the contract choice. Second, we compare direct and indirect exporters and find evidence that suggests that intermediaries play a relevant role in contract enforcement across borders. Terms of use: Documents inJEL-Code: F120, F300, G210, G320.

show abstract

Inter‐Firm Trade Finance in Times of Crisis

Cited by 11 publications

References 54 publications

Productivity, Credit Constraints and the Role of Short-Run Localization Economies: Micro-Evidence from Italy

Productivity, Credit Constraints and the Role of Short-Run Localization Economies: Micro-Evidence from Italy

Trade Finance In Crisis: Market Adjustment Or Market Failure?

Payment choice in international trade: Theory and evidence from cross‐country firm‐level data

Contact Info

Product

Resources

About