NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Exports and Financial Shocks

Mary Amiti, David E. Weinstein

NBER Working Paper No. 15556
Issued in December 2009
NBER Program(s):   IFM   ITI

A striking feature of many financial crises is the collapse of exports relative to output. In the 2008 financial crisis, real world exports plunged 17 percent while GDP fell 5 percent. This paper examines whether deteriorations in bank health can help explain the large drops in exports relative to output in the recent crisis. Our paper is the first to establish a causal link between the health of banks providing trade finance and growth in a firm's exports relative to its domestic sales. We overcome measurement and endogeneity issues by using a unique data set, covering the Japanese financial crises from 1990 through 2010, which enables us to match exporters with the main bank that provides them with trade finance. Our point estimates are economically and statistically significant, suggesting that the health of financial institutions is an important determinant of firm-level exports during crises.

download in pdf format
   (516 K)

email paper

This paper is available as PDF (516 K) or via email.

This paper was revised on December 5, 2011

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w15556

Published: Mary Amiti & David E. Weinstein, 2011. "Exports and Financial Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1841-1877. citation courtesy of

Users who downloaded this paper also downloaded these:
Feenstra, Li, and Yu w16940 Exports and Credit Constraints Under Incomplete Information: Theory and Evidence from China
AntrĂ s and Foley w17091 Poultry in Motion: A Study of International Trade Finance Practices
Eaton, Kortum, Neiman, and Romalis w16666 Trade and the Global Recession
Chor and Manova w16174 Off the Cliff and Back? Credit Conditions and International Trade during the Global Financial Crisis
Alessandria, Kaboski, and Midrigan w16059 The Great Trade Collapse of 2008-09: An Inventory Adjustment?
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us