Measuring the Impact of Trade Finance on South African Export Flows
AbstractTrade finance (or short-term credit) plays a crucial role in facilitating international trade yet is particularly vulnerable to financial crises as banks increase the pricing on all trade finance transactions to cover increased funding costs and higher credit risks. Whereas South Africaâ€™s financial institutions largely managed to strengthen their capital positions during the global financial crisis, the countryâ€™s trade flows and access to capital (in particular trade finance and its costs) were hit hard by the crisis. Little is known about the extent of shortages or â€˜gapsâ€™ in trade finance and the impact of this on South Africaâ€™s recent trade performance. Whilst our research recognises that access to trade finance is not the main cause of South Africaâ€™s trade contraction, our research suggests that a one percentage point increase in the interbank lending rate of our trade partner could reduce exports by approximately ten percent, all else equal.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Economic Research Southern Africa in its series Working Papers with number 232.
Length: 32 pages
Date of creation: 2011
Date of revision:
Contact details of provider:
Postal: Newlands on Main, F0301 3rd Floor Mariendahl House, cnr Campground and Main Rds, Claremont, 7700 Cape Town
Phone: 021 671-3980
Fax: +27 21 671 3912
Web page: http://www.econrsa.org/
More information through EDIRC
exports trade finance crisis;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F30 - International Economics - - International Finance - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-22 (All new papers)
- NEP-DEV-2011-08-22 (Development)
- NEP-INT-2011-08-22 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John B. Taylor & John C. Williams, 2008.
"A Black Swan in the Money Market,"
NBER Working Papers
13943, National Bureau of Economic Research, Inc.
- John C. Williams & John B. Taylor, 2009. "A Black Swan in the Money Market," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 58-83, January.
- John B. Taylor & John C. Williams, 2009. "A black swan in the money market," Proceedings, Federal Reserve Bank of San Francisco, issue Jan.
- Iacovone, Leonardo & Zavacka, Veronika, 2009. "Banking crises and exports : lessons from the past," Policy Research Working Paper Series 5016, The World Bank.
- John Taylor & John Williams, 2008. "Further Results on a Black Swan in the Money Market," Discussion Papers 07-046, Stanford Institute for Economic Policy Research.
- Davin Chor & Kalina Manova, 2010.
"Off the Cliff and Back? Credit Conditions and International Trade during the Global Financial Crisis,"
08-2010, Singapore Management University, School of Economics.
- Chor, Davin & Manova, Kalina, 2012. "Off the cliff and back? Credit conditions and international trade during the global financial crisis," Journal of International Economics, Elsevier, vol. 87(1), pages 117-133.
- Davin Chor & Kalina Manova, 2010. "Off the Cliff and Back? Credit Conditions and International Trade during the Global Fnancial Crisis," NBER Chapters, in: Market Institutions and Financial Market Risk National Bureau of Economic Research, Inc.
- Davin Chor & Kalina Manova, 2010. "Off the Cliff and Back? Credit Conditions and International Trade during the Global Financial Crisis," NBER Working Papers 16174, National Bureau of Economic Research, Inc.
- Berman, Nicolas & Martin, Philippe, 2010.
"The vulnerability of sub-Saharan Africa to the financial crisis: the case of trade,"
CEPR Discussion Papers
7765, C.E.P.R. Discussion Papers.
- Nicolas Berman and Philippe Martin, 2010. "The Vulnerability Of Sub-Saharan Africa To The Financial Crisis: The Case Of Trade," EUI-RSCAS Working Papers 15, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
- Nicolas Berman and Philippe Martin, 2010. "The Vulnerability Of Sub-Saharan Africa To The Financial Crisis: The Case Of Trade," RSCAS Working Papers 2010/15, European University Institute.
- Mary Amiti & David E. Weinstein, 2011.
"Exports and Financial Shocks,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 126(4), pages 1841-1877.
- MÃ¡rcio ValÃ©rio Ronci, 2004. "Trade Finance and Trade Flows," IMF Working Papers 04/225, International Monetary Fund.
- Romain Wacziarg & Karen Horn Welch, 2003.
"Trade Liberalization and Growth: New Evidence,"
NBER Working Papers
10152, National Bureau of Economic Research, Inc.
- Rob Gregory & Christian Henn & Brad Mcdonald & Mika Saito, 2010. "Trade And The Crisis: Protect Or Recover," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(02), pages 165-181.
- Jane Korinek & Jean Le Cocguic & Patricia Sourdin, 2010. "The Availability and Cost of Short-Term Trade Finance and its Impact on Trade," OECD Trade Policy Papers 98, OECD Publishing.
- Alun H. Thomas, 2009. "Financial Crises and Emerging Market Trade," IMF Staff Position Notes 2009/04, International Monetary Fund.
- Jeffrey Sachs & Andrew Warner, 1995.
"Economic Reform and the Progress of Global Integration,"
Harvard Institute of Economic Research Working Papers
1733, Harvard - Institute of Economic Research.
- Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
- Minetti, Raoul & Zhu, Susan Chun, 2011. "Credit constraints and firm export: Microeconomic evidence from Italy," Journal of International Economics, Elsevier, vol. 83(2), pages 109-125, March.
- Ferson, Wayne E & Harvey, Campbell R, 1993. "The Risk and Predictability of International Equity Returns," Review of Financial Studies, Society for Financial Studies, vol. 6(3), pages 527-66.
- Chauffour, Jean-Pierre & Farole, Thomas, 2009. "Trade finance in crisis : market adjustment or market failure ?," Policy Research Working Paper Series 5003, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yoemna Mosaval).
If references are entirely missing, you can add them using this form.