Why does finance matter for trade? Evidence from new data

Marc Auboin, Martina Engemann 03 December 2012

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Academic interest in the role of trade finance has grown in the context of the financial crisis of 2008-09 and the subsequent economic downturn, just as policymakers’ interest was once caught by the Asian financial crisis (IMF 2003).

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Topics:  International trade

Tags:  trade, international trade, financial crisis, Trade finance, Great Recession, trade credit, trade insurance

Off the cliff and back? Credit conditions and international trade during the global financial crisis

Kalina Manova, Davin Chor 15 February 2010

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The global financial crisis has decimated international trade. What started out as a credit crisis in the US financial sector quickly spilled over into a broader contraction in industrial production and trade for many countries. In all, world trade is expected to have fallen by up to 9% in 2009 (WTO 2009).

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Topics:  Global crisis International trade

Tags:  international trade, global crisis, trade credit

Decline and gradual recovery of global trade financing: US and global perspectives

Jesse Mora, William M. Powers 27 November 2009

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The collapse of Lehman Brothers in September 2008 is widely viewed as the spark that triggered the global economic crisis – what has come to be known as the “Great Recession.” Global credit markets froze, and this may have affected the specialised financial instruments – letters of credit and the like – that help grease the gears of international trade finance. Some analysts view this as contributing to the drop in global trade that occurred between the third quarter of 2008 and the second quarter of 2009 (Auboin 2009).

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Topics:  International trade

Tags:  Trade finance, great trade collapse, US trade collapse, trade credit

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