Financing Time to Trade

Pauline Bourgeon () and Jean-Charles Bricongne
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Pauline Bourgeon: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This paper provides new firm-level evidence of the impact of financial frictions on international trade. First, by drawing on a unique instrument to capture financial frictions at firm level, we address concerns about endogenous measures of firms' financial constraints. Second, we test empirically the role of distance and long trading time in reinforcing the negative effect of financial frictions on firms' exports. We use detailed customs and balance sheet data combined with a unique dataset on payment incidents to conduct this empirical analysis. We find that financial frictions significantly reduce firm's export sales. Our estimations show a significant effect of distance and trading time in reinforcing the negative effect of financial frictions on export sales.

Keywords: distance; financial frictions; firms' exports; international trade; trading time (search for similar items in EconPapers)
Date: 2016-05
New Economics Papers: this item is included in nep-int
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01373461v1
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Published in 2016

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Working Paper: Financing Time to Trade (2016)
Working Paper: Financing Time to Trade (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-01373461

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