Financial structures, banking regulations, and export dynamics

Raoul Minetti, Alen Mulabdic, Michele Ruta and Susan Chun Zhu

Journal of Banking & Finance, 2021, vol. 124, issue C

Abstract: This paper studies the impact of financial structures and regulations on export dynamics using data from a large panel of countries over the 1997–2014 period. The results suggest that bank-oriented financial systems can boost the number of exporters more than market-oriented systems. However, especially in lower income countries with lax bank regulation, banks tend to reduce the dynamism of the export sector, slowing down exporters’ entry and exit. This reduced dynamism appears to reflect domestic banks’ protection of incumbent exporters more than banks’ screening of entrants or buffering of incumbents in difficult times. Foreign banks mitigate these effects, enhancing the dynamism of the export sector.

Keywords: Export dynamics; Financial structures; Bank regulation (search for similar items in EconPapers)
JEL-codes: D82 F23 G21 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:124:y:2021:i:c:s0378426621000145

DOI: 10.1016/j.jbankfin.2021.106056

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