Are Banks Engines of Export? Financial Structures and Export Dynamics

Are Banks Engines of Export? Financial Structures and Export Dynamics

This paper studies the impact of financial structures on the dynamics of the export sector using rich data from over 60 countries. The results reveal that bank-oriented financial systems boost the size of the export sector more than market-oriented...

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Main Authors: Minetti, Raoul, Mulabdic, Alen, Ruta, Michele, Zhu, Susan
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
EXPORT COMPETITIVENESS
BANKING SERVICES
EXPORT FINANCE
FINANCIAL STRUCTURES
EXPORT DYNAMICS
FOREIGN BANKS
TRADE FACILITATION
TRADE FINANCE
Online Access:http://documents.worldbank.org/curated/en/891251540473620564/Are-Banks-Engines-of-Export-Financial-Structures-and-Export-Dynamics
http://hdl.handle.net/10986/30641
id okr-10986-30641
recordtype oai_dc
spelling okr-10986-306412021-06-08T14:42:48Z Are Banks Engines of Export? Financial Structures and Export Dynamics Minetti, Raoul Mulabdic, Alen Ruta, Michele Zhu, Susan EXPORT COMPETITIVENESS BANKING SERVICES EXPORT FINANCE FINANCIAL STRUCTURES EXPORT DYNAMICS FOREIGN BANKS TRADE FACILITATION TRADE FINANCE This paper studies the impact of financial structures on the dynamics of the export sector using rich data from over 60 countries. The results reveal that bank-oriented financial systems boost the size of the export sector more than market-oriented financial systems. However, especially in middle- and low-income countries, this effect mostly stems from banks slowing down exporters' exit rather than promoting firms' entry into export. The reduced exit from the export sector appears to reflect domestic banks' tendency to evergreen loans to exporters ("soft budget constraint") more than banks' buffering role in difficult times. Foreign banks mitigate this effect and enhance the dynamism of the export sector. 2018-11-01T17:03:23Z 2018-11-01T17:03:23Z 2018-10 Working Paper http://documents.worldbank.org/curated/en/891251540473620564/Are-Banks-Engines-of-Export-Financial-Structures-and-Export-Dynamics http://hdl.handle.net/10986/30641 English Policy Research Working Paper;No. 8621 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic EXPORT COMPETITIVENESS
BANKING SERVICES
EXPORT FINANCE
FINANCIAL STRUCTURES
EXPORT DYNAMICS
FOREIGN BANKS
TRADE FACILITATION
TRADE FINANCE
spellingShingle EXPORT COMPETITIVENESS
BANKING SERVICES
EXPORT FINANCE
FINANCIAL STRUCTURES
EXPORT DYNAMICS
FOREIGN BANKS
TRADE FACILITATION
TRADE FINANCE
Minetti, Raoul
Mulabdic, Alen
Ruta, Michele
Zhu, Susan
Are Banks Engines of Export? Financial Structures and Export Dynamics
relation Policy Research Working Paper;No. 8621
description This paper studies the impact of financial structures on the dynamics of the export sector using rich data from over 60 countries. The results reveal that bank-oriented financial systems boost the size of the export sector more than market-oriented financial systems. However, especially in middle- and low-income countries, this effect mostly stems from banks slowing down exporters' exit rather than promoting firms' entry into export. The reduced exit from the export sector appears to reflect domestic banks' tendency to evergreen loans to exporters ("soft budget constraint") more than banks' buffering role in difficult times. Foreign banks mitigate this effect and enhance the dynamism of the export sector.
format Working Paper
author Minetti, Raoul
Mulabdic, Alen
Ruta, Michele
Zhu, Susan
author_facet Minetti, Raoul
Mulabdic, Alen
Ruta, Michele
Zhu, Susan
author_sort Minetti, Raoul
title Are Banks Engines of Export? Financial Structures and Export Dynamics
title_short Are Banks Engines of Export? Financial Structures and Export Dynamics
title_full Are Banks Engines of Export? Financial Structures and Export Dynamics
title_fullStr Are Banks Engines of Export? Financial Structures and Export Dynamics
title_full_unstemmed Are Banks Engines of Export? Financial Structures and Export Dynamics
title_sort are banks engines of export? financial structures and export dynamics
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/891251540473620564/Are-Banks-Engines-of-Export-Financial-Structures-and-Export-Dynamics
http://hdl.handle.net/10986/30641
_version_ 1764472510285348864

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