Financial geography and access as determinants of exports
Ginger Turner
Cambridge Journal of Regions, Economy and Society, 2011, vol. 4, issue 2, 269-286
Abstract:
Although the link between financial development and trade is well documented, the international trade literature has typically defined a country's 'financial development' in macroeconomic terms, rather than considering within-country channels. This paper shows that the impact of finance on exports depends not only on the extent to which the sector relies on external finance but also on the financial channels available. With a data set of 27 sectors from over 120 countries, I find that financial access and efficiency variables--particularly the geographic penetration of bank branches and the business loan application processes--significantly impact exports. Results also suggest remittances may not substitute for formal financial sector development. Copyright 2011, Oxford University Press.
Date: 2011
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Cambridge Journal of Regions, Economy and Society is currently edited by Judith Clifton, Anna Davies, Betsy Donald, Emil Evenhuis, Stefania Fiorentino (Associate Editor), Harry Garretsen, Meric Gertler, Amy Glasmeier, Mia Gray, Robert Hassink, Dieter Kogler, Michael Kitson, Linda Lobao, Charles van Marrewijk, Ron Martin, Peter Sunley, Peter Tyler and Chun Yang
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