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Financial Vulnerability and Export Dynamics

Author

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  • Marie-Ange Véganzonès-Varoudakis

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique)

  • Youssouf Kiendrebeogo
  • Melise Jaud

Abstract

This paper examines the implication of financial shocks on firms' export dynamics in developing economies. To address this question, we use the Exporter Dynamics Dataset, which contains new data on the micro-structure of exports for 34 developing countries between 1997 and 2011, and investigate how exporter behavior is affected by financial crises. We find that financial crises in both the origin and destination countries have a large negative effect on firm, product, and destination dynamics, particularly in industries dependent on external finance. Financial crises make the costs of exporting more difficult to meet and in turn reduce firms' ability to start exporting, introduce new products, and sell to new destinations. We also find that the impact of financial crises is less pronounced in exporting countries with relatively more open capital accounts, suggesting that portfolio inflows may be a good substitute for under-developed domestic financial markets.

Suggested Citation

  • Marie-Ange Véganzonès-Varoudakis & Youssouf Kiendrebeogo & Melise Jaud, 2016. "Financial Vulnerability and Export Dynamics," Post-Print hal-03058303, HAL.
    • Handle: RePEc:hal:journl:hal-03058303
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    References listed on IDEAS

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    Cited by:

    1. Wagner Joachim, 2016. "Exporter and Importer Dynamics Database for Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(3), pages 411-420, May.
    2. Joachim Wagner, 2016. "A survey of empirical studies using transaction level data on exports and imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 215-225, February.
    3. Luca Alfieri, 2018. "Heterogeneity Of Financial Institutions In The Process Of Economic And Monetary Integration In East Asia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 112, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    4. Luca Alfieri, 2021. "Heterogeneity of financial institutions in the process of economic and monetary integration in East Asia," The World Economy, Wiley Blackwell, vol. 44(4), pages 1053-1076, April.

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    More about this item

    Keywords

    Financial Contraints; Firms’ Export Dynamics; Manufacturing; Developing Countries;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G01 - Financial Economics - - General - - - Financial Crises
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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