Abstract:
This paper studies the trade credit and delinquency behavior in Kazakhstan paying attention to
the effects of two recent crises using a unique dataset of large firms and SMEs from the year
2009 to 2016. Our estimates suggest that the relationship between trade and bank credit is
mainly substitutional except that it was complementary for large firms following the year 2014–
5 crisis. This new piece of evidence on the non-uniform relationship between trade and bank
credit during crisis might provide more insight into the mixed findings in the literature. We also
discern that trade credit demand is more prevalent among capital-intensive firms. Kazakhstani
firms pass along a sizeable portion of their delinquent receivable to their trade credit suppliers.
The transmission of trade credit delinquency, additionally, is amplified during the year 2014–5
economic crisis but the year 2009 global financial crisis.