Inter-Firm Trade Finance in Times of Crisis

• Tác giả: Anna Maria C. Menichini
• Ngôn ngữ: eng
• Ký hiệu phân loại: 658.1 Organization and finance
• Thông tin xuất bản: 2012
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 296977
• Chủ đề: 1. ACCESS TO CREDIT; 2. ACCESS TO FINANCE; 3. ACCESS TO FINANCING; 4. ACCOUNTS PAYABLE; 5. ACCOUNTS RECEIVABLE

Tóm tắt

 The paper discusses the main features that distinguish inter-firm international trade finance from alternative sources of financing. On the one hand, inter-firm trade finance could help overcome informational problems associated with other lending relationships
  on the other, it may contribute to propagate shocks due to the interconnection among firms along credit chains. The paper evaluates the potential effects of a financial crisis on the use of trade credit for firms operating in developing countries. It argues that while the advantages of trade credit might remain largely unexploited due to poor legal institutions, the disadvantages might be exacerbated because of these firms greater exposure to a default chain. Based on these arguments, a menu of choices is identified for what policymakers can do to boost firms access to inter-firm trade finance in times of crisis.