Are You Experienced? Survival and Recovery of Trade Relations after Banking Crises

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe examine the impact of banking crises on the duration of trade relations. We also investigate the effect of product-level characteristics, such as the size of exports and exporting experience, and of sector-level financial dependence variables, on the time to recover after a banking crisis. Using highly disaggregated US import data from 157 countries between 1996 and 2009, we first provide evidence that banking crises negatively affect the survival of trade relations. On average, the occurrence of a banking crisis decreases the rate of survival of trade relations by 13 percent. Moreover, we find that both the size of exports and exporting experience matter for recovery of trade relations after banking crises. Sectoral financial dependence has an experience-specific effect. Relations with more experience recover faster in financially dependent sectors. There is instead no clear evidence indicating effects of size heterogeneity, neither in financially dependent sectors nor in non-financially dependent ones. The results are robust and consistent across alternative econometric models.

Financial Liberalization and Allocative Efficiency of Capital

“…The coe¢ cient of the banking crisis dummy is positive implying that a banking crisis decreases the duration of a country's exports. These results are consistent with the recent empirical evidence on banking crises and trade (Iacovone et al 2009, Beverelli et al 2010). The interaction term of the distance measure with the banking crisis dummy is negative implying that a banking crisis does not clean out the sectors incompatible with a country's factor endowments.…”

“…The interaction terms of the equity market liberalization variables and the distance measure have positive and signi…cant coe¢ cients, implying that …nancial liberalization increases the likelihood of exits for the products inconsistent with a country's factor endowments. Distance to comparative advantage has a positive and statistically signi…cant impact on the hazard function, meaning that the products using intensively scarce resources have a relatively lower survival rate 14 .…”

Study on the survival of China agri-food export trade relationships

“…Export experience. Consisting with some empirical studies, Beverelli et al (2011) confirm the fact that export experience positively affects survival and has a significant effect on time for export relation to recover. With respect to multi-spells, in Section 3, we treat them as independent since the overall distribution of durations does not appear to be distorted by multi-spell observations.…”

El comercio al servicio de todos

“…Si bien unas pocas empresas «nacidas en una escena internacional» y pymes muy innovadoras están completamente integradas en los mercados internacionales, y una cuota considerable de pymes participa en cadenas de valor mundiales como proveedores de exportadores (OCDE y Banco Mundial, 2015), para muchas pymes la exportación puede tener una vida corta: solo uno o dos años en muchos países (Wagner, 2015). Los exportadores más pequeños y con menos experiencia suelen ser más vulnerables a las caídas de la demanda; por ejemplo, tras una crisis mundial (Banco Mundial, 2010); Beverelli et al, 2011).…”