Foreign direct investment (FDI) in developing countries is often associated with higher economic growth due to knowledge and technology spillovers to local firms. One way how FDI speeds up growth is that it facilitates the manufacturing of more sophisticated products by local firms. So far,...

Internationally active firms rely intensively on trade credits even though they are considered particularly expensive. This phenomenon has been little explored so far. Our theoretical analysis shows that trade credits can alleviate financial constraints arising from asymmetric information...

type="main" xml:id="twec12167-abs-0001" <title type="main">Abstract</title> <p>Trade credits are an important financing tool for internationally active firms. This is surprising, as trade credits are generally more expensive than bank credits and thus a costly substitute for bank financing. In this paper, we investigate the...</p>

<Para ID="Par1"> Internationally active firms rely intensively on trade credits even though they are considered particularly expensive. This phenomenon has been little explored so far. Our analysis focusses on cash-in-advance financing. With the help of a theoretical model, we show that firms intensively use...</para>

After the breakdown of the central planning system, Central and East European countries (CEECs) took considerable effort in liberalising their economies leading to lasting changes in CEEC trade. As a result, between 1996 and 2004 almost all of these countries displayed very high growth rates of...

This working paper deals with the question how international trade can lead to economic growth. Since only technical progress can lead to sustained economic growth international trade has to accelerate the rate of technical progress to promote economic growth. Technical progress is mainly...

Internationally active firms rely intensively on trade credits even though they are considered particularly expensive. This phenomenon has been little explored so far. Our theoretical analysis shows that trade credits can alleviate financial constraints arising from asymmetric information...

Internationally active firms rely intensively on trade credits even though they are considered particularly expensive. This phenomenon has been little explored so far. Our theoretical analysis shows that trade credits can alleviate financial constraints arising from asymmetric information...

Trade credits are an important financing tool for internationally active firms. This is surprising, as trade credits are generally more expensive than bank credits and thus a costly substitute for bank financing. In this paper, we investigate the relation between trade credits and bank credits...