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Veysel Avsar
''Travel Visas and Trade Finance''
( 2020, Vol. 40 No.1 )
We examine the impact of Turkey's removal of visa policies on trade finance using cross-country cross-industry payments data on international transactions. Exploiting the variation in visa requirements across countries and over time, we find that the removal of visa barriers significantly increases exporter-financed trade to Turkey. Our results suggest that easier personal interactions between global business partners as a result of liberal visa policies help them build trust and make it easier for them to monitor transactions and mitigate credit risks.
Keywords: Trade finance, travel visas, open account, method of payments in international trade, payment choice
JEL: F1 - Trade: General
F3 - International Finance: General
Manuscript Received : Oct 11 2019 Manuscript Accepted : Feb 22 2020

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