Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/149641
Authors: 
Auboin, Marc
DiCaprio, Alisa
Year of Publication: 
2016
Series/Report no.: 
WTO Staff Working Paper ERSD-2017-01
Abstract: 
Trade finance shortfalls now appear regularly. Does this matter for trade expansion and economic development in developing countries? Global trade finance has resumed following the 2009 global financial crisis. However, the pattern of recovery has been uneven across countries and categories of firms. The recovery has been robust for the main routes of trade and for large trading companies. By contrast, access to trade finance remains costly and scarce in countries which have the strongest potential for trade expansion. The policy response to this problem depends on whether this represents a market failure, or a new global equilibrium. We introduce new data from a global survey of firms to argue that real shortfalls are exacerbated by perception gaps in a way that has enabled market failures to persist. This has troubling implications most directly through its effect on the ability for small firms to benefit from the reallocation of production and investment within global supply chains.
Subjects: 
international financial institutions
coherence
G-20
financial crisis
trade and development
trade finance
economic development
JEL: 
F13
F34
F36
O19
G21
G32
Document Type: 
Working Paper

Files in This Item:
File
Size
857.26 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.