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Financial Liberalization and the Relationship-Specificity of Exports

Author

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  • Defever, Fabrice

    (University of Nottingham)

  • Suedekum, Jens

    (Heinrich Heine University Düsseldorf)

Abstract

We investigate the causal impact of equity market liberalizations in the period 1980-1997 on sectoral export performance across 91 countries. The increased availability of external finance has boosted trade of industries that intensively use relationshipspecific inputs, and lowered exports of industries using standardized inputs.

Suggested Citation

  • Defever, Fabrice & Suedekum, Jens, 2013. "Financial Liberalization and the Relationship-Specificity of Exports," IZA Discussion Papers 7479, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7479
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    References listed on IDEAS

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    1. Pol Antràs & Mihir A. Desai & C. Fritz Foley, 2009. "Multinational Firms, FDI Flows, and Imperfect Capital Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 1171-1219.
    2. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    3. Pol Antràs & Ricardo J. Caballero, 2009. "Trade and Capital Flows: A Financial Frictions Perspective," Journal of Political Economy, University of Chicago Press, vol. 117(4), pages 701-744, August.
    4. Nathan Nunn, 2007. "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 569-600.
    5. Manova, Kalina, 2008. "Credit constraints, equity market liberalizations and international trade," Journal of International Economics, Elsevier, vol. 76(1), pages 33-47, September.
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    Cited by:

    1. Abdoul Rachid Issoufou Dogo, 2024. "Impact de l'intégration financière régionale sur le commerce intra régional des produits manufacturés dans la zone CEDEAO," African Development Review, African Development Bank, vol. 36(2), pages 292-305, June.
    2. Amissah, Emmanuel & Bougheas, Spiros & Defever, Fabrice & Falvey, Rod, 2021. "Financial system architecture and the patterns of international trade," European Economic Review, Elsevier, vol. 136(C).

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    More about this item

    Keywords

    international trade; financial liberalization; credit constraints; relationship‐specificity;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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