International Trade Finance and the Cost Channel of Monetary Policy in Open Economies

Patel, Nikhil

doi:10.2139/ssrn.3216982

Cited by 2 publications

(2 citation statements)

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“…Furthermore, they are conducted within a partial equilibrium framework. Patel (2016) provides a notable exception by examining the interaction between trade finance and monetary policy in a two-country New Keynesian DSGE model and showing that it plays a significant role in the international propagation of shocks. This paper, by contrast, investigates the impact of inter-firm lending on cyclical fluctuations of international trade along the intensive and extensive margins.…”

Section: Related Literaturementioning

confidence: 99%

Trade credit, trade income elasticity and the international transmission of shocks

Watson

2021

Eurasian Econ Rev

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The paper examines the impact of trade credit on cyclical fluctuations in international trade. It provides new empirical evidence based on firm-level UK and Irish data showing that exporters use trade credit more actively and intensively than non-exporters. The study introduces inter-firm lending into an open economy general equilibrium model with heterogeneous firms and endogenous entry into the exports market. It demonstrates that trade credit amplifies the impact of macroeconomic shocks on international trade both along the intensive and extensive margins and that it significantly contributes to the high trade income elasticity observed in the data.

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Section: Related Literaturementioning

confidence: 99%

Trade credit, trade income elasticity and the international transmission of shocks

Watson

2021

Eurasian Econ Rev

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“…Naeimifar, A., and Abedi, S. used the input-output technique to study the monetary losses and value-added incurred during international trade to compute the actual trade balance or the "green trade balance" environmental effects, showing that despite the trade deficit, Iran is a net importer of pollution and that international trade and quality are significantly correlated [14]. Patel, N. investigated the role of international trade finance in the monetary transmission mechanism through a dynamic stochastic general equilibrium framework, revealing the quantitatively important impacts of trade finance and spillover effects on shocks across countries, showing that financing through international trade can significantly change the source and propagation of the business cycle [15]. Duan, Y. et al study the interactions between international trade, the environment, and environmental regulations using pollution as a by-product of production and assess the impact of international trade on the overall volume of pollution emissions, showing that productivity and trade costs are the main forces influencing the impact of environmental regulations on determining international production and trade [16].…”

Section: Introductionmentioning

confidence: 99%

Research on Grading and Evolution of International Trade Development Quality of City Clusters Based on Logit-ISM Modeling

2023

Applied Mathematics and Nonlinear Sciences

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In order to further accelerate the realization of high-quality development of international trade and enhance the discourse power in international trade activities, this paper explores the grading and evolution of the quality of international trade development of city clusters. After analyzing the DEA static model and DEA-Malmquist dynamic evaluation model, combined with the entropy value method, the entropy value-DEA model is constructed to measure the comprehensive evaluation of the quality of international trade development of the city cluster, and the results are comprehensively analyzed. In addition, combined with the Logit-ISM model to analyze the factors affecting the development quality of international trade of city cluster and explore the grading and evolution of the development quality of international trade of city cluster from two perspectives of global statistics and global spatial trend. The results show that the fluctuation of the trade structure score is smaller than the trade scale, with an average growth rate of 0.165, and the trade competitiveness score basically stays in a state of growth except for 2008 and 2009, with an average annual growth rate of 0.972. The urban agglomerations in the eastern region account for a total of 0.38 of the city agglomerations in the city agglomerations synthesis, and the number of prefectural-level cities included is 106, which accounts for a total of 0.52 of the number of prefectural-level cities included in the city agglomerations. The quality of international trade development in city clusters in the eastern and northeastern regions stands out as the most significant. Based on the research in this paper, we advocate for the balanced development of the quality rating and evolution of each city cluster in international trade development.

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International Trade Finance and the Cost Channel of Monetary Policy in Open Economies

Cited by 2 publications

References 77 publications

Trade credit, trade income elasticity and the international transmission of shocks

Trade credit, trade income elasticity and the international transmission of shocks

Research on Grading and Evolution of International Trade Development Quality of City Clusters Based on Logit-ISM Modeling

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