TRADE CREDIT AND FINANCIAL CRISES IN KAZAKHSTAN

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Date

2022

Authors

Adilkhanova, Zarina
Nurlankul, Aruzhan
Token, Aizat
Yavuzoglu, Berk

Journal Title

Journal ISSN

Volume Title

Publisher

Journal of Asian Economics

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.

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Keywords

Type of access: Open Access, Trade credit, Delinquency, Financial crisis, Large enterprises, SMEs

Citation

Adilkhanova, Z., Nurlankul, A., Token, A., & Yavuzoglu, B. (2022). Trade credit and financial crises in Kazakhstan. Journal of Asian Economics, 80, 101472. https://doi.org/10.1016/j.asieco.2022.101472

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