Trade Credits and Bank Credits in International Trade: Substitutes or Complements?

Abstract

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International Trade, Multinational Activity, and Corporate Finance

“…The International Trade Administration gives more institutional details in their Trade Finance Guide Castagnino et al (2013). provide an unusually detailed description of exporters' financing practices in Argentina Engemann et al (2014). show that although bank credit and buyer-supplier trade credit function as substitutes for unconstrained firms, they become complementary for financially constrained exporters; in their data, they observe firms' total bank and trade credit rather than credit used specifically for export activities.…”

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

“… For theoretical contributions to trade finance see Schmidt‐Eisenlohr (), Ahn (), Antràs and Foley (), Engemann et al. (), Eck et al. () and Olsen ().…”

Don’t throw in the towel, throw in trade credit!

“…By going beyond survey data, focusing on an exogenous shock and employing a difference-in-differences approach we overcome the limitations of the existing studies and are able to provide more convincing evidence pointing towards a positive effect of market competition on trade credit provision. 2 Fourth, by pointing out the role of competition, a factor that has not been considered before, we extend the literature on determinants of financing terms in international trade transactions (Ahn, 2014;Antràs and Foley, 2015;Eck et al, 2015;Engemann et al, 2014;Glady and Potin, 2011;Hoefele et al, 2016;Niepmann and Schmidt-Eisenlohr, 2017;Schmidt-Eisenlohr, 2013) . Our study is also the first one relying on direct measures of export financing for a large sample of exporters.…”