Click here for search results
Credit chains and sectoral comovemen t: does the use of trade credit amplify sectoral shocks ?
Author:Raddatz, Claudio; Collection Title:Policy Research working paper ; no. WPS 4525
Country:World; Date Stored:2008/02/21
Document Date:2008/02/01Document Type:Policy Research Working Paper
SubTopics:Bankruptcy and Resolution of Financial Distress; Access to Finance; Economic Theory & Research; ; Investment and Investment ClimateLanguage:English
Region:The World RegionReport Number:WPS4525
Volume No:1 of 1  

Summary: This paper provides evidence of the presence and relevance of a credit-chain amplification mechanism by looking at its implications for the correlation of industries. In particular, it tests the hypothesis that an increase in the use of trade-credit along the input-output chain linking two industries results in an increase in their correlation. The analysis uses detailed data on the correlations and input-output relations of 378 manufacturing industry-pairs across 44 countries with different degrees of use of trade credit. The results provide strong support for this hypothesis and indicate that the mechanism is quantitatively relevant.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 53 pagesOfficial version*0.60
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: