Trade credit remains an important source of finance for firms in developing countries and many firms in developed countries, especially those that are young, small, or informationally opaque for other reasons. This paper summarizes the literature and explains the pervasiveness of trade credit, detailing its potential advantages over formal credit in terms of the information that buyers and sellers have about each other and their ability to monitor...
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2023/06/05
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Documento de trabalho sobre pesquisa de políticas
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WPS10468
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1
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2023/06/05
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Disclosed
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Trade Credit : Theory and Evidence for Emerging Economies and Developing Countries
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