Arbeitspapier
No Guarantees, No Trade: How Banks Affect Export Patterns
This study provides evidence that shocks to the supply of trade finance have a causal effect on U.S. exports. The identification strategy exploits variation in the importance of banks as providers of letters of credit across countries. The larger a U.S. bank's share of the trade finance market in a country is, the larger should be the effect on exports to that country if the bank reduces its supply of letters of credit. We find that supply shocks have quantitatively significant effects on export growth. A shock of one standard deviation to a country's supply of trade finance decreases exports, on average, by 2 percentage points. The effect is much larger for exports to small and risky destinations and in times when aggregate uncertainty is high. Our results imply that global banks affect export patterns and suggest that trade finance played a role in the Great Trade Collapse.
- Sprache
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Englisch
- Erschienen in
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Series: CESifo Working Paper ; No. 4650
- Klassifikation
-
Wirtschaft
International Investment; Long-term Capital Movements
Multinational Firms; International Business
International Lending and Debt Problems
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- Thema
-
trade finance
global banks
letter of credit
exports
financial shocks
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Niepmann, Friederike
Schmidt-Eisenlohr, Tim
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2014
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Niepmann, Friederike
- Schmidt-Eisenlohr, Tim
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2014
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