Conference Agenda
Please note that all times are shown in the time zone of the conference. The current conference time is: 15th Sept 2026, 08:44:47am CEST
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Daily Overview |
| Session | |
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CF 13: From Natural Disasters to Trade Shocks: Finance and Distributional Effects Location: LR M1.2 (Floor 1) Session Chair: Marco Pagano, Università degli Studi di Napoli Federico II | |
| Presentation 1 | |
ID: 1510
The Ripple Effect: Supply Chain Reconfigurations and Cross-border Credit Dynamics 1: Federal Reserve Board; 2: Banca d'Italia; 3: Banco de Espana; 4: Banco de la Republica We study the role that cross-border firm-to-firm credit plays in financing exporters. Exploiting the exogenous shock of US tariffs on Chinese goods in 2018–2019, we examine the response of Colombian firms -- bystanders not targeted by trade policy -- to redirected US demand. Using credit registry information for cross-border and domestic non-financial firm financing, we find that almost 40 percent of the total credit sourced by exporters came from cross-border firm-to-firm credit at end-2019, which represented 80 percent of their cross-border credit. In contrast to traditional trade credit, which is typically short-term, firm-to-firm credit has an average maturity of almost 2 years, and has characteristics resembling bank lending. Our findings highlight an overlooked financial channel underpinning the international trade network.
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