Financial Aspects of Transactions with FDI: Trade Credit Provision by SMEs in China

This paper will document financial aspects of transactions, and trade credit supply behavior with FDI among small and medium-sized enterprises(SMEs) based on two original surveys, conducted in four cities in China in 2003. The survey was designed to capture the nature of inter-firm transactions, trade credit and other financial conditions. Literature on FDI mainly refers to technology transfer, employment or investment. This paper focuses on the role and significance of FDI in the supply of trade credit due to its trade credit enforcement technology. Yanagawa, Ito and Watanabe [2006] developed a model which indicates that when a seller has higher enforcement technology or a buyer has richer liquidity, both trade credit and transaction volume will be increased. In this paper, we confirmed that FDI and G contributed to the provision of trade credit and had a positive external effect on trade credit enforcement towards China’s economy. (1) Sales towards FDI customers have the power to increase the trade credit ratio,even when controlling other factors such as choice of payment instrument, competitiveness, and expost default management. This implies that FDI does provide trade credit, not only because it has superior liquidity, but because it is also superior in terms of enforcement of trade credit repayment.(2) Cash constraints of the buyer influence the decisions concerning trade credit provided by the seller, as a model in Yanagawa, et al. [2006] predicted, and this implies that strategic default is a serious concern among SMEs in China. (3) Spillover effect exists in payment enforcement technology in transactions with FDI customers.

Ex ante bargaining and ex post enforcement in trade credit supply: theory and evidence from China

If payment of goods is easily default, economic transaction may deeply suffer from the risk. This risky environment formed a mechanism that governs how economic transaction is realized, subsequently how trade credit is given. This paper distinguished ex ante bargaining and ex post enforcement, then modeled that bargaining power reduces trade credit ex ante, and ex post enforcement power and cash in hand of buyer can enhances both trade amount and trade credit in a presence of default risk. We modeled this relationship in order to organize findings from previous literature and from our original micro data on detailed transaction in China to consistently understand the mechanism governing trade credit. Then empirically tested a structure from the theoretical prediction with data. Results show that ex post enforcement power of seller mainly determines size of trade credit and trade amount, cash in hand of buyer can substitute with enforcement power; Bargaining power of seller is exercised to reduces trade credit and trade amount for avoiding default risk, but it simultaneously improves enforcement power as well. We found that ex post enforcement power consists of (ex ante) bargaining power on between two parties and intervention from the third party. However, its magnitude is far smaller than the direct impact to reduce trade credit and trade amount.

The asset/liability structure of the Philippine banks and non-bank financial institutions in 2000s : a preliminary study for financial access analyses

Based on the consolidated statements data of the universal/commercial banks (UKbank) and non-bank financial institutions with quasi-banking licenses, this paper presents a keen necessity of obtaining data in detail on both sides (assets and liabilities) of their financial conditions and further analyses. Those would bring more adequate assessments on the Philippine financial system, especially with regard to each financial subsector's financing/lending preferences and behavior. The paper also presents a possibility that the skewed locational and operational distribution exists in the non-UKbank financial subsectors. It suggests there may be a significant deviation from the authorities' (the BSP, SEC and others) intended/anticipated financial system in the banking/non-bank financial institutions' real operations.

Towards a professional army. Changes to the structure of the officer cadre and the manning system of the Russian armed forces. OSW Commentary No. 73, 2012-03-28

The structure of the Russian army’s personnel has undergone a major transformation in recent years. The Armed Forces are no longer a downsized continuation of the Soviet-era mass army, but are gradually becoming a de facto professional army in which conscription, now employed on a diminishing scale, will primarily constitute a first step towards a continued professional military career. The cornerstone for the process of professionalisation has been laid by a personnel reform which cut the number of officer posts by nearly half and considerably restricted the recruitment of new officers, thus restoring traditional proportions to the structure of the officer corps. The plans to ultimately implement a manning system based predominantly on contract service are a natural consequence of these changes. The ongoing professionalisation of the Russian Armed Forces should be treated as a conscious effort which is mainly necessitated by global trends: despite the demographic changes taking place, Russia could still maintain an army with a declared strength of one million soldiers, most of them conscripts.

Baseline test of compact vehicle side structure, 25 mph, 60 degree impact, Torino-to-Volare test no. 1. Final report.

National Highway Traffic Safety Administration, Washington, D.C.

Baseline test of compact vehicle side structure 25 mph, 60 degree impact, Torino-to-Volare test no. 2. Final report.

National Highway Traffic Safety Administration, Washington, D.C.

Impact test of compact vehicle with modified side structure, 25 mph, 60 degree impact, Torino-to-Volare, test no. 3. Final report.

National Highway Traffic Safety Administration, Washington, D.C.

Impact test of compact vehicle with modified side structure, 35 mph, 90 degree impact, Torino-to-Volare, test no. 4. Final report.

National Highway Traffic Safety Administration, Washington, D.C.

Impact test of compact vehicle with modified side structure, 35 mph, 60 degree impact, Torino-to-Volare, test no. 5. Final report.

National Highway Traffic Safety Administration, Washington, D.C.

Impact test of compact vehicle with modified side structure, 35 mph, 60 degree impact, Impala-to-Volare, test no. 10. Final report.

National Highway Traffic Safety Administration, Washington, D.C.

Impact test of compact vehicle with modified side structure, 35 mph, 90 degree impact, Impala-to-Volare, test no. 11. Final report.

National Highway Traffic Safety Administration, Washington, D.C.

Impact test of compact vehicle with modified side structure, 35 mph, 60 degree impact, Torino-to-Volare, test no. 6. Final report.

National Highway Traffic Safety Administration, Washington, D.C.

Impact test of compact vehicle with modified side structure, 35 mph, 60 degree impact, Torino-to-Volare, test no. 7. Final report.

National Highway Traffic Safety Administration, Washington, D.C.

Impact test of compact vehicle with modified side structure, 35 mph, 90 degree impact, Torino-to-Volare, test no. 8. Final report.

National Highway Traffic Safety Administration, Washington, D.C.

Baseline test of compact vehicle side structure, 35 mph, 90 degree impact, Torino-to-Volare, test no. 9. Final report.

National Highway Traffic Safety Administration, Washington, D.C.