Redistributional View of Trade Credit Revisited: Evidence from micro data of Japanese small firms

Kazuo Ogawa (), Elmer Sterken and TOKUTSU Ichiro

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This paper investigates the redistributional view of trade credit from the demand side, based on a unique micro data of Japanese small firms where information on transactions of intermediate goods between firms of different size is available. The redistributional hypothesis is tested in two steps. In the first step we examine the relationship of customer dependence on bank loans with a higher proportion of purchases from large suppliers. In the second step we examine the effect of a dependence on large suppliers on trade credit. We find evidence supporting the redistributional hypothesis for solvent customers, but not for debt-overhang customers.

New Economics Papers: this item is included in nep-lab
Date: 2009-06

Downloads: (external link)
http://www.rieti.go.jp/jp/publications/dp/09e029.pdf (application/pdf)

Related works:
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: http://EconPapers.repec.org/RePEc:eti:dpaper:09029

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)
Contact information at EDIRC.
Series data maintained by TAKIZAWA Itsuko ().