 Destination trade credit and exports: Evidence from cross-country panel dataShuai Zeng, Changyuan Luo and Laixun Zhao Journal of International Money and Finance, 2023, vol. 137, issue C Abstract: We examine the impact of destination trade credit (DTC) on exports, using cross-country panel data for 2000–2018 and focusing on financing by foreign trade partners. We find DTC promotes a country’s exports disproportionately more in liquidity-dependent industries, a consistent result after addressing endogeneity and various robustness tests. DTC mainly promotes trade by increasing export quantity, while lowering export prices and export varieties. Further, the effect is greater if the level of financial development of the source country is lower, but smaller if the product complexity of industries is higher. During the 2008 global financial crisis, DTC also contributes to export expansion, but the effect is relatively small. Keywords: Informal finance; Destination trade credit; Exports; Cash in advance; Deferred payment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:137:y:2023:i:c:s0261560623001018 DOI: 10.1016/j.jimonfin.2023.102900 Access Statistics for this article Journal of International Money and Finance is currently edited by J. R. Lothian More articles in Journal of International Money and Finance from Elsevier |
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