TY  - JOUR
AU  - Fisman,Raymond
AU  - Love,Inessa
TI  - Trade Credit, Financial Intermediary Development and Industry Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8960
PY  - 2002
Y2  - May 2002
UR  - http://www.nber.org/papers/w8960
L1  - http://www.nber.org/papers/w8960.pdf
N1  - Author contact info:
Raymond Fisman
School of Business
Columbia University
622 Uris Hall
3022 Broadway
New York, NY 10027
Tel: 212/854-9157
Fax: 212-316-9219
E-Mail: rf250@columbia.edu

Inessa Love
The World Bank
1818 H Street, NW
Washington, DC 20433
Tel: 202/477-1234
Fax: 202/477-6391
E-Mail: Ilove@worldbank.org
AB  - Recent work suggests that financial development is important for economic growth, since financial markets more effectively allocate capital to firms with high value projects.  For firms in poorly developed financial markets, implicit borrowing in the form of trade credit may provide an alternative source of funds. We show that industries with higher dependence on trade credit financing exhibit higher rates of growth in countries with weaker financial institutions. Furthermore, consistent with barriers to trade credit access among young firms, we show that most of the effect that we report comes from growth in the size of pre-existing firms.
ER  -