Export Survival: The Role of Banks and Stock Markets

43 Pages Posted: 12 Nov 2020 Last revised: 8 Apr 2022

See all articles by Melise Jaud

Melise Jaud

World Bank

Madina Kukenova

Webster University - Webster University Geneva

Martin Strieborny

University of Glasgow - Adam Smith Business School

Date Written: April 7, 2022

Abstract

Banks and stock markets play distinct roles in helping exporters survive in foreign markets, conditional on the specific financial needs of exported products. Stock markets rather than banks help exporters who lack easily collateralizable tangible assets. Active rather than large stock markets promote exports of products requiring high levels of working capital. And the trade credit can act as a substitute for external financing only from banks and only in the presence of well-established export links. These results on product-level export survival provide new insights into the transmission process from finance to the real economy.

Keywords: banks versus stock markets, transmission from finance to real economy, finance and export survival

JEL Classification: G10, G21, F14

Suggested Citation

Jaud, Melise and Kukenova, Madina and Strieborny, Martin, Export Survival: The Role of Banks and Stock Markets (April 7, 2022). Available at SSRN: https://ssrn.com/abstract=3697473 or http://dx.doi.org/10.2139/ssrn.3697473

Melise Jaud

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Madina Kukenova

Webster University - Webster University Geneva ( email )

Route de Collex 15
Bellevue, CH- 1293
Switzerland

Martin Strieborny (Contact Author)

University of Glasgow - Adam Smith Business School ( email )

Glasgow, Scotland
United Kingdom

HOME PAGE: http://www.martinstrieborny.com

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