Trade Credit, Bank Credit and Crisis: Some Empirical Evidence for India?

Saibal Ghosh

Margin: The Journal of Applied Economic Research, 2015, vol. 9, issue 4, 333-361

Abstract: Employing data on an extended sample of manufacturing firms during 1993–2012, the article studies the inter-linkage between trade credit and bank credit and how it evolved during the crisis. Accordingly, we first discuss the relevance of a trade-credit channel in India and subsequently, explore the interplay between these two financing forms. The analysis provides some evidence in favour of a trade-credit channel in India. More importantly, the findings indicate that bank credit and trade credit are complementary, although there was a differential impact on accounts payable (demand) and accounts receivables (supply) during the crisis. JEL Classification: G21, G32, P52

Keywords: Trade Credit; Bank Credit; Crisis; Monetary Policy; India (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:mareco:v:9:y:2015:i:4:p:333-361

DOI: 10.1177/0973801015596854

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