Are Banks Engines of Export? Financial Structures And Export Dynamics

Minetti, Raoul; Mulabdić, Alen; Ruta, Michele; Zhu, Susan Chun

doi:10.1596/1813-9450-8621

Cited by 8 publications

(6 citation statements)

References 35 publications

(69 reference statements)

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“…Thornton and Goglio (2002) obtained substantial results by emphasizing the role of economic size, distance, and a shared language in regional commerce for ASEAN. Moreover, Anaman and Al-Kharusi (2003) for Brunei-Darussalam; Babetskaia- Kukharchuk and Maurel (2003) for the EU; Blomqvist (2004) for Singapore; Rahman et al (2006) for Bangladesh; Batra (2006) for India; Baroncelli (2007) for Pakistan-India; Minetti, Mulabdic, Ruta, and Chun Zhu (2018) for the UK-EU, all those studies focus on widespread discussion; the role and importance of bilateral trade (BT) and estimated the outcomes based on traditional economic concepts.…”

Section: Literature Reviewmentioning

confidence: 99%

Pakistan’s Global Trade Potential with Selected Trading Partners: A Gravity Model Approach Using Static and Dynamic Panel Data

2022

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This research study employs a gravity model to explore Pakistan's trade potential from 2000 to 2020. China, United Arab Emirates (UAE), Saudi Arabia (KSA), Kuwait, United States (USA), Malaysia, Japan, India, Singapore, Afghanistan, Iran, Spain, Germany, United Kingdom (UK) and Belgium are among our significant trading partners. The study uses both static and dynamic econometric techniques to capture the trade potential of Pakistan. The findings from both methodologies are comparable, indicating that economic size and distance have a significant effect on bilateral trade. Furthermore, throughout the research period, political globalization is determined to be considerable and has an important influence on the economic masses. These factors support the theoretical model(s) that Pakistan and Pakistan’s trading partners with economic integration, political globalization, and distance all depict a significant impact on trade relations.

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Section: Literature Reviewmentioning

confidence: 99%

Pakistan’s Global Trade Potential with Selected Trading Partners: A Gravity Model Approach Using Static and Dynamic Panel Data

2022

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“…Paravisini et al (2015) state that credit constraints reduce exports mostly by raising the variable cost of production, rather than by limiting long-term investments. Minetti et al (2018) look at how financial structures affect export sector dynamics, showing that domestic banks tend to promote expansions of exports by reducing exit rates, rather than by promoting entry. On the other hand, Pakistan is relatively abundant in labor, as opposed to capital (Mayer and Wood 1999;Abbas and Waheed 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

Slow Rockets and Fast Feathers or the Link between Exchange Rates and Exports: A Case Study for Pakistan

Brun¹,

Gambetta²,

Varela³

2020

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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“…Second, the degree of banking development as represented by a proxy variable of the number of bank branches per 100,000 adults has a positive impact on the increase in non-oil exports of Indonesia. The more the number of bank branches is, the easier Satriani, R & Machmud, TMZ/The Role of Banking Services in ... 194 financial access is for exporters 9 . Third, the policy on the mandatory use of LCs in Indonesia significantly poses a negative influence on the growth of non-oil exports of Indonesia to all risk groups of countries.…”

Section: Policymentioning

confidence: 99%

“…Banking development will influence the ability of banks to analyze risk. Banking development can be reflected in several indicators, such as credit to GDP (Minetti et al 2018) and the number of banks in a country (Lo Turco & Maggioni 2017).…”

Section: Banking Development and The Structure Of Export Lc Marketmentioning

confidence: 99%

The Role of Banking Services in Determining the Destination Countries for Indonesia’s Non-Oil and Gas Export

Satriani

Machmud

2020

ECON FINANC INDONES

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This study aims to examine whether the risk factor and banking services play a significant role in determining not only the export performance of a country but also the pattern of export destination markets, with the reference to the case of Indonesia. These two indicators are interrelated because the risk factor in export transactions can be mitigated by banking sector. Using the data of export Letter of Credits (LCs) for non-oil and gas exports of Indonesia as a banking instrument to mitigate special risk transactions to 102 export destination countries as well as a panel data methodology for the 2011–2018 period, this study discovers that the risk of export destination countries affects the decline in non-oil and gas exports of Indonesia to the alleged high-risk countries that are non-traditional export markets of Indonesia by 8.34%. In contrast, the LCs only significantly affect the increase in non-oil and gas exports of Indonesia to the lowand medium-risk countries by 0.024–0.029%, most of which are traditional export markets of Indonesia. It implies that banking sector in general does not have the appetite for providing financing for Indonesian exporters attempting to penetrate non-traditional export markets. This result underlines that commercial banks in Indonesia have a significant role in shaping the pattern of destination countries for Indonesian export. Consequently, government intervention is essentially needed by assuming or sharing part of the risk with state banks supposing the government continues to expect exporters to be able to penetrate into the non-traditional countries.

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Are Banks Engines of Export? Financial Structures And Export Dynamics

Cited by 8 publications

References 35 publications

Pakistan’s Global Trade Potential with Selected Trading Partners: A Gravity Model Approach Using Static and Dynamic Panel Data

Pakistan’s Global Trade Potential with Selected Trading Partners: A Gravity Model Approach Using Static and Dynamic Panel Data

Slow Rockets and Fast Feathers or the Link between Exchange Rates and Exports: A Case Study for Pakistan

The Role of Banking Services in Determining the Destination Countries for Indonesia’s Non-Oil and Gas Export

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