dc.contributor.advisor |
Mudd, Shannon |
|
dc.contributor.author |
Born, Henrik |
|
dc.date.accessioned |
2013-06-18T15:36:42Z |
|
dc.date.available |
2013-06-18T15:36:42Z |
|
dc.date.issued |
2013 |
|
dc.identifier.uri |
http://hdl.handle.net/10066/11037 |
|
dc.description.abstract |
Small and large firms alike rely on their suppliers not just for material inputs, but also for lines of credit. This form of financing – called trade credit – has been studied as an alternative source of financing to loans from financial intermediaries (i.e. banks). In this paper, I derive a theoretical framework from existing literature that forms the basis for predicting how the allocation of trade credit and bank loans change in a recession. I conduct statistical analysis using World Bank Development Indicators and the Enterprise Survey, examining firm-level data on Eastern Europe and Central Asia. Ultimately, I find strong evidence that the relationship between economic growth and the use of trade credit is nonlinear. The results of the analysis also suggest that suppliers provide a more stable source of funding than financial intermediaries do. |
|
dc.description.sponsorship |
Haverford College. Department of Economics |
|
dc.language.iso |
eng |
|
dc.rights.uri |
http://creativecommons.org/licenses/by-nc/3.0/us/ |
|
dc.subject.lcsh |
Lines of credit |
|
dc.subject.lcsh |
Bank loans |
|
dc.title |
Trade Credit Versus Bank Credit: Which is More Stable in a Recession? |
|
dc.type |
Thesis |
|
dc.rights.access |
Haverford users only |
|