Time to ship during financial crises
Philippe Martin,
Thierry Mayer,
José De Sousa (jose.de-sousa@u-paris2.fr) and
Nicolas Berman (nicolas.berman@univ-amu.fr)
No 9089, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Abstract:
We show that the negative impact of financial crises on trade is magnified for destinations with longer time-to-ship. A simple model where exporters react to an increase in the probability of default of importers by increasing their export price and decreasing their export volumes to destinations in crisis is consistent with this empirical finding. For longer shipping time, those effects are indeed magnified as the probability of default increases as time passes. Some exporters also decide to stop exporting to the crisis destination, the more so the longer time-to-ship. Using aggregate data from 1950 to 2009, we find that this magnification effect is robust to alternative specifications, samples and inclusion of additional controls, including distance. The firm level predictions are also broadly consistent with French exporter data from 1995 to 2005.
Keywords: Financial crises; International trade; Time-to-ship (search for similar items in EconPapers)
JEL-codes: F10 G01 G32 (search for similar items in EconPapers)
Date: 2012-08
References: Add references at CitEc
Citations: View citations in EconPapers (40)
Downloads: (external link)
https://cepr.org/publications/DP9089 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
Related works:
Journal Article: Time to Ship during Financial Crises (2013)
Working Paper: Time to ship during Financial Crisis (2013)
Working Paper: Time to Ship during Financial Crises (2013)
Working Paper: Time to ship during Financial Crisis (2013)
Working Paper: Time to Ship during Financial Crises (2013)
Working Paper: Time to ship during Financial Crisis (2013)
Working Paper: Time to ship during Financial Crisis (2013)
Chapter: Time to Ship during Financial Crises (2012)
Working Paper: Time to ship during financial crises (2012)
Working Paper: Time to Ship during Financial Crises (2012)
Working Paper: Time to Ship during Financial Crises (2012)
Working Paper: Time to Ship during Financial Crises (2012)
Working Paper: Time to Ship During Financial Crises (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:9089
Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP9089
orders@cepr.org
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by (repec@cepr.org).