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| Veysel Avsar |
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| ''Travel Visas and Trade Finance'' |
| ( 2020, Vol. 40 No.1 ) |
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| 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. |
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| Keywords: Trade finance, travel visas, open account, method of payments in international trade, payment choice |
JEL: F1 - Trade: General
F3 - International Finance: General |
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| Manuscript Received : Oct 11 2019 | | Manuscript Accepted : Feb 22 2020 |
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