Financial Dependence and Intensive Margin of Trade

60 Pages Posted: 12 Nov 2020 Last revised: 16 Aug 2021

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: August 16, 2021

Abstract

This paper examines the transmission process from finance to the real economy in the context of product-level export survival. We find that conditional on the specific financial needs of exported products, banks and stock markets play distinctive roles in helping exporters survive in foreign markets. Stock markets rather than banks help exporters who lack easily collateralizable tangible assets. Active rather than large stock markets facilitate exports of products requiring high levels of working capital. And the trade credit can act as a substitute only for bank financing and only in the presence of well-established export links.

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

JEL Classification: F14, G10, G21

Suggested Citation

Jaud, Melise and Kukenova, Madina and Strieborny, Martin, Financial Dependence and Intensive Margin of Trade (August 16, 2021). 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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