Financial dependence and the terms of payments in international transactions


TÜRKCAN K., Avşar V.

APPLIED ECONOMICS LETTERS, vol.25, no.8, pp.531-534, 2018 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 25 Issue: 8
  • Publication Date: 2018
  • Doi Number: 10.1080/13504851.2017.1343439
  • Journal Name: APPLIED ECONOMICS LETTERS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.531-534
  • Keywords: Method of payments, trade finance, post-shipment, prepayment, financial dependence, F14, F13
  • Akdeniz University Affiliated: Yes

Abstract

Using a novel data on payment choice in export transactions, this study shows that financing cost in a country is more important in terms of offering (undertaking) post-shipment (prepayment) terms in exports (imports) for the industries that rely more on external finance.