Credit sales and advance payments: Substitutes or complements?

Simona Mateut and Piercarlo Zanchettin

Economics Letters, 2013, vol. 118, issue 1, 173-176

Abstract: We investigate the interaction between supplier credit sales and customer advance payment. We find evidence that advance payments and credit sales are used as complementary terms of payment in international trade and in transactions of differentiated goods.

Keywords: Trade credit; Advance payment; Complementarity; Substitutability; Signalling (search for similar items in EconPapers)
JEL-codes: G31 G32 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (11)

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Working Paper: Credit sales and advance payments: substitutes or complements? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:118:y:2013:i:1:p:173-176

DOI: 10.1016/j.econlet.2012.10.020

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