Title: Banking Crises And Exports: Lessons From The Past
Abstract: No AccessPolicy Research Working Papers25 Jun 2013Banking Crises And Exports: Lessons From The PastAuthors/Editors: Leonardo Iacovone, Veronika ZavackaLeonardo Iacovone, Veronika Zavackahttps://doi.org/10.1596/1813-9450-5016SectionsAboutPDF (0.3 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:This paper analyzes the impact of banking crises on manufacturing exports exploiting the fact that sectors differ in their needs for external financing. Relying on data from 23 banking crises episodes involving both developed and developing countries during the period 1980-2000 the authors separate the impact of banking crises on export growth from that of other exogenous shocks (i.e. demand shocks). Their findings show that during a crisis the export of sectors more dependent on external finance grow significantly less than other sectors. However, this result holds only for sectors depending more heavily on banking finance as opposed to inter-firm finance. Furthermore, sectors characterized by higher degree of assets tangibility appear to be more resilient in the face of a banking crisis. The effect of the banking crises on exports is robust and additional to external demand shocks. The effect of the latter is independent and additional to that of a banking shock, and is particularly significant for sectors producing durable goods. Previous bookNext book FiguresReferencesRecommendedDetailsCited ByThe direct and indirect effects of financial development on international trade: Evidence from the CEEC-6Journal of International Financial Markets, Institutions and Money, Vol.78Financial constraints and global value chain participation: Firm-level evidence from IndiaThe Journal of International Trade & Economic Development, Vol.30, No.517 March 2021After the Panic: Are Financial Crises Demand or Supply Shocks? 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