Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80063
Authors: 
Auboin, Marc
Engemann, Martina
Year of Publication: 
2012
Series/Report no.: 
WTO Staff Working Paper ERSD-2012-18
Abstract: 
Trade finance has received special attention during the financial crisis as one of the potential culprits for the great trade collapse. Several researchers have used micro level data to establish the link between trade finance and trade, especially so during the financial crisis, and have found diverting results. This paper analyses the effect of trade credit on trade on a macro level through a whole cycle. We employ Berne Union data on export credit insurance, the most extensive dataset on trade credits available at the moment, for the period of 2005-2011. Using an instrumentation strategy we can identify a significantly positive effect of insured trade credit, as a proxy for trade credits, on trade. The effect of insured trade credit on trade is very strong and remains stable over the cycle, not varying between crisis and non-crisis periods.
Subjects: 
trade credit
financial crisis
import estimation
JEL: 
F13
F34
G21
G23
Document Type: 
Working Paper

Files in This Item:
File
Size
120.29 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.