Time to ship during Financial Crisis

Nicolas Berman (), José De Sousa (), Thierry Mayer and Philippe Martin

SciencePo Working papers Main from HAL

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 found that this magnification effect is robust to alternative specifications, samples and inclusion of additional controls, including distance. The form level predictions are also broadly consistent with French exporter data from 1995 to 2005.

Keywords: Time-to-ship; Financial crises; international trade (search for similar items in EconPapers)
Date: 2013-09-01
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03460785
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Citations: View citations in EconPapers (2)

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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 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)
Working Paper: Time to Ship During Financial Crises (2012)
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