Finance and export diversifications Nexus in Russian regions: Role of trade globalization and regional potential

Mohammed Shakib, Kazi Sohag (), M. Kabir Hassan and Rogneda Vasilyeva

Emerging Markets Review, 2023, vol. 57, issue C

Abstract: We investigate if financial development (FD) can reduce the export concentration in regional context, corroborating the role of the World Trade Organization (WTO) membership, sanctions and investment potential. Given the considerable heterogeneity in data across regions and over time, we apply the Method of Moments Quantile Regression (MMQR) to analyze panel time-series data from 2009 to 2019. Our finding shows that bank credit disbursement as a proxy of FD drives export diversification in all quantiles (q10-q90), where the role of FD is pronounced at middle to higher quantiles. Besides, the impact of financial development on trade diversification is profound in the regions with higher business potential compared to the lower business potential. We affirm that the adaption of WTO membership elevates trade diversification through promoting competitiveness and providing nascent exporting sectors opportunities to grow. Surprisingly, the economic sanctions imposed in 2014 promoted Russian regional trade diversification. We provided several practical policy implications.

Keywords: Financial development; Bank credit; Trade diversification; Export; WTO; Sanction; Investment potential; MMQR; Russia (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S156601412300064X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:57:y:2023:i:c:s156601412300064x

DOI: 10.1016/j.ememar.2023.101059

Access Statistics for this article

Emerging Markets Review is currently edited by Jonathan A. Batten

More articles in Emerging Markets Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().