Spatial Networks in Trade Credit Between Geographically Close Industrial Small and Medium Enterprises in an Urban Environment.

This paper provides evidence about the relevant role of geography on spatial local networks in trade credit between industrial reduced size companies and distin- guishing the spatial behavior according to the firms' size and technological intensity. Using data from a survey of small and medium companies in the municipality of Madrid (Spain), we find significant spatial effects in trade credit between spatially close industrial companies. Whereas prior work has examined the temporal dynamics in trade credit with aggregated information, the spatial dimension with firm level data has not been considered before in trade credit studies and is the aim of this study. We find significant results for the spatio-temporal networks between geographically close companies which cause interaction effects in the proposed models by concluding that firms' surrounding local characteristics impact the issue of trade credit for each company. [ABSTRACT FROM AUTHOR]