EconPapers    
Economics at your fingertips  
 

Financial frictions, trade credit, and the 2008–09 global financial crisis

Brahima Coulibaly, Horacio Sapriza and Andrei Zlate

International Review of Economics & Finance, 2013, vol. 26, issue C, 25-38

Abstract: This paper studies the role of the credit crunch in the severe contraction of economic activity during the 2008–09 global financial crisis, using firm-level data from six emerging Asian economies. After controlling for the effect of falling demand, we find that sales declined by less for firms with better pre-crisis financial conditions. Amid the decline in external financing opportunities, some firms relied more on trade credit from suppliers during the crisis, which allowed them to post relatively better sales. Export-intensive firms resorted less to trade credit as an alternative source of finance, which contributed to their larger declines in sales.

Keywords: Trade credit; 2008–09 financial crisis; Emerging Asia; International trade (search for similar items in EconPapers)
JEL-codes: F14 F23 G32 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056012000822
Full text for ScienceDirect subscribers only

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: https://EconPapers.repec.org/RePEc:eee:reveco:v:26:y:2013:i:c:p:25-38

DOI: 10.1016/j.iref.2012.08.006

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-31
Handle: RePEc:eee:reveco:v:26:y:2013:i:c:p:25-38