Financing Time to Trade

Pauline Bourgeon () and Jean-Charles Bricongne
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Pauline Bourgeon: Banque de France, Paris School of Economics, Centre d'Economie de la Sorbonne et Université de Lorraine, https://sites.google.com/site/bourgeonpauline/

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

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)
JEL-codes: D22 F10 F14 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2016-05
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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ftp://mse.univ-paris1.fr/pub/mse/CES2016/16049.pdf (application/pdf)

Related works:
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:mse:cesdoc:16049

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