Dynamics of Trade Credit in China
Bibliographic Data
| ID | 9720469 |
|---|---|
| Authors | Wukuang Cun (0000-0002-2453-8476, Shanghai University of Finance & Economics , China), Vincenzo Quadrini (University of Southern California , USA , Peking University HSBC Business School, China & CEPR, UK, corresponding author), Qi Sun (0000-0003-2222-6505, Zhejiang University), Junjie Xia (0000-0002-5109-9915, Central University of Finance and Economics , China & Peking University, China) |
| Year | 2022 |
| Volume | 132 |
| Issue | 648 |
| Pages | 2702-2736 |
| Publication date | 2022-11-07 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (PUBLISHER • GB) |
| DOI | 10.1093/ej/ueac036 |
| OpenAlex | W4284896355 |
| Language | EN |
| References cited | 27 |
We use Chinese manufacturing data to show that upstream manufacturing industries received higher credit during the monetary expansion of 2005–11. However, the higher credit received by upstream industries did not generate a similar increase in ‘trade lending’ to downstream industries, which limited the transmission of the credit expansion to the whole manufacturing sector. We develop a model that formalises some of the key features of the Chinese economy, and show why a credit expansion tilted toward the upstream sector may not fully cascade to the whole economy
Business · Cascade · China · Downstream (manufacturing · Economics · Industrial organization · International economics · Manufacturing sector · Operations management · Telecommunications · Trade Credit · Upstream (networking · Upstream and downstream (DNA · Computer Science · Corporate Finance and Governance · Engineering · Finance · Firm Innovation and Growth · Working Capital and Financial Performance
| Highly cited | No |
|---|