Trade credit in the rice market of the Mekong Delta, Vietnam
PhD ceremony: Ms. L.T.U. Nguyen, 13.15 uur, Academiegebouw, Broerstraat 5, Groningen
Title: Trade credit in the rice market of the Mekong Delta, Vietnam
Promotor(s): prof. B.W. Lensink, prof. C.L.M. Hermes
Faculty: Economics and Business
All over the world, firms provide trade credit to their trading partners. Whereas existing studies focus more on the use of trade credit in developed countries, this dissertation focuses on the role and determinants of trade credit supply in Vietnam, a transition economy. The thesis consists of four empirical studies, three of which are based on data from a large-scale survey covering information from over 600 firms active in the rice supply chain. The first study uses secondary data on Vietnamese listed firms, collected from publicly available sources. The analysis shows that firms that provide more credit manage to have higher rates of sales growth. The second study shows that rice supplying firms that face stronger competitive pressure of competition tend to grant more credit. This strategy is applied to strengthen their position vis-à-vis its competitors. We elaborate on these results in the third study and show that firms choose to supply more credit to larger and more established clients. These results support the idea that trade credit supply is used as a sales promoting tool. The fourth empirical analysis shows that characteristics of markets in the rice supply chain (competition between suppliers, bargaining power of suppliers vis-à-vis their clients, customer characteristics, main business activity, and value of transactions) differ considerably across different parts of the rice supply chain and influence the role and determinants of the supply of trade credit accordingly. The results of this final study suggest that specific market contexts should be taken into account when studying the role and determinants of trade credit.
Last modified: | 13 March 2020 01.09 a.m. |
More news
-
24 October 2023
Co-creation as a strategy for addressing societal challenges
Co-creation and interdisciplinarity are two themes that have long taken centre stage in the work of Iris Vis, who was recently appointed Captain of Science of the Top Sector Logistics. We met up with her to talk about this role in the perfect spot:...
-
13 October 2023
Moniek Tromp appointed Captain of Science of the Top Sector Chemistry
Prof. Moniek Tromp has been appointed Captain of Science of the Chemistry Top Sector by the Minister of Economic Affairs and Climate Policy. As from 1 July 2023, she succeeded Prof. Bert Weckhuysen from Utrecht University.
-
13 October 2023
Informing donors about the use of their previous donations improves donor retention and blood supply
Blood donation services should inform donors about the use of their last donation in order to increase future donations. A new study by Edlira Shehu (Professor of Digital Marketing, University of Groningen) in collaboration with Besarta Veseli and...