Trade Credit Information Sharing Among SMEs in Kenya

information in the credit market, high screening cost and difficulty of contract enforcement. One solution is a system of credit information sharing, which reduces asymmetric information and default rate and helps firms access financing, leading to firm growth and more efficient resource allocation and higher total productivity. In this project I propose to study the impact of a voluntary trade credit information sharing program for small and medium enterprises (SMEs) in Kenya, by means of randomized encouragement of take-up. I focus on the program’s effect in helping firms access trade credit and in disciplining firms’ repayment behavior, as well as information spillovers.