This paper investigates the effect of export on firm inventory using Chinese firm data. We find that exporting increases firms' inventory stocks. And exporting to more distant destinations is associated with less frequent and more concentrated export transactions

A central problem in vertical relationships is to minimize the mismatch between supply and demand. This paper studies a problem of contracting between a manufacturer and a retailer who privately observes the retail demand materialized after the contracting stage. Cash payments are bounded above...