Finance and international trade: A review of the literature

Anne-Gaël Vaubourg (anne-gael.vaubourg@u-bordeaux.fr)
Additional contact information
Anne-Gaël Vaubourg: Larefi, Université de Bordeaux

No 1403, Larefi Working Papers from Larefi, Université Bordeaux 4

Abstract: The aim of this paper is to review the literature on the link between nance and international trade. First, export performance is shown to strongly depend on sectors' or fimrs' external nance dependence. More vulnerable rms or sectors export less than others. Moreover, insu cient nancial development and nancial crises harm exports to a greater extent when rms or sectors are dependent on external nance. Second, trade finance plays a key role in nancing trade and provides a powerful transmission channel for fi nancial shocks, which a ect international trade to a greater extent than domestic activities. Moreover there is a reciprocal causality between trade and nance. Finally, financial reforms and trade liberalization appear to be complementary, indicating that trade openness reforms are more e ective in promoting GDP growth when nancial systems are well developed.

Keywords: international trade; nancial constraint; nancial development; trade nance; institutional complementarities and substitutabilities (search for similar items in EconPapers)
JEL-codes: F10 F14 G20 G21 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2014-03
References: Add references at CitEc
Citations:

Downloads: (external link)
http://laf.u-bordeaux4.fr/RePEc/CR_14EFI03.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to laf.u-bordeaux4.fr:80 (No such host is known. )

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:laf:wpaper:cr1403

Access Statistics for this paper

More papers in Larefi Working Papers from Larefi, Université Bordeaux 4 Contact information at EDIRC.
Bibliographic data for series maintained by Cyril Mesmer (cyril.mesmer@u-bordeaux4.fr this e-mail address is bad, please contact repec@repec.org).