Trading goods across international borders is risky and takes time. Trading partners need to agree on how to share the risk and how to finance the period when

the goods are in transit. This paper argues that the ability to bear the risk by providing export financing can give emerging market producers a competitive edge in

foreign destinations. The analysis, based on the data covering the universe of Turkey's exports disaggregated by exporter, product, destination, and financing terms for the

period 2003-2007, supports this view. The identification strategy takes advantage of an exogenous shock, the end of the Multi-Fiber Arrangement (MFA), a system of

bilateral quotas governing the global trade in textiles and clothing until January 1, 2005. The results, based on a difference-in-differences approach, suggest that the share

of exporter-financed exports to the European Union (EU) increased in the post-MFA period in products where Turkey's competitors faced binding MFA quotas, relative to

the products where the quotas were not binding in 2004. As Turkey was not subject to the MFA quotas due to its customs union with the EU, these results are consistent

with an increase in competition pushing Turkish exporters to offer export financing.