Why Trade Finance Gaps Persist: Does it Matter for Trade and Development?
Auboin, Marc; DiCaprio, Alisa | March 2017
Abstract
Trade finance shortfalls now appear regularly. Does this matter for trade expansion and economic development in developing countries? Global trade finance has resumed following the 2009 global financial crisis. However, the pattern of recovery has been uneven across countries and categories of firms. The recovery has been robust for the main routes of trade and for large trading companies. By contrast, access to trade finance remains costly and scarce in countries which have the strongest potential for trade expansion. The policy response to this problem depends on whether this represents a market failure, or a new global equilibrium. We introduce new data from a global survey of firms to argue that real shortfalls are exacerbated by perception gaps in a way that has enabled market failures to persist. This has troubling implications most directly through its effect on the ability for small firms to benefit from the reallocation of production and investment within global supply chains.
Citation
Auboin, Marc; DiCaprio, Alisa. 2017. Why Trade Finance Gaps Persist: Does it Matter for Trade and Development?. © Asian Development Bank Institute. http://hdl.handle.net/11540/7710.Keywords
Taxation
Business Financing
Investment Requirements
Capital Needs
Tax Incentives
Project Risks
Tariff agreements
Customs convetions
Import policy
Export policy
Trade Finance
Risk Financing
Regional Development Finance
Public Finance
Infrastructure Financing
Financing of Infrastructure
Financial Security
Financial Intermediation
Finance And Trade
Enterprise Financing
Trade Regulation
Trade Finance
Regional Trade Agreements
General Agreement On Tariffs And Trade
Foreign and Domestic Financing
Investments
Finance
Market
Markets
Use tax
Tax administration and procedure
Taxing power
Effect of taxation
Business enterprises
Foreign trade and employment
Mentoring in business
Trade routes
Bills of exchange
Swaps
Show allCollapse
Citable URI
http://hdl.handle.net/11540/7710Metadata
Show full item recordRelated items
-
Aid for Trade in Asia and the Pacific: Its Role in Trade-Driven Growth: Report from the Co-Chairs of the Regional Technical Group on Aid for Trade for Asia and the Pacific
Asian Development Bank (Asian Development Bank, 2012-02-01)The overall connection between trade, development assistance, economic growth, and poverty reduction has become broad-based conventional wisdom. What is perhaps less well understood is how to operationalize these connections concretely at the country or sub-regional level. Aid for Trade in Asia and the Pacific: Its Role in Trade-Driven Growth - takes stock of Asia and the Pacific experience and ...The overall connection between trade, development assistance, economic growth, and poverty reduction has become broad-based conventional wisdom. What is perhaps less well understood is how to operationalize these connections concretely at the country ... -
Digital Trade Facilitation: Paperless Trade in Regional Trade Agreements
Duval, Yann; Mengjing, Kong (Asian Development Bank Institute, 2017-06-30)Digital trade facilitation refers to the application of modern information and communication technologies (ICTs) to simplify and automate international trade procedures. It is rapidly becoming essential to maintaining trade competitiveness and enabling effective participation in cross-border e-commerce. This paper examines the extent to which measures aimed at dematerializing trade data and documents ...Digital trade facilitation refers to the application of modern information and communication technologies (ICTs) to simplify and automate international trade procedures. It is rapidly becoming essential to maintaining trade competitiveness and enabling ... -
Processing Trade, Trade Liberalisation, and Opening Up: China’s Miracle of International Trade
Yu, Miaojie; Zhu, Huihuang (Economic Research Institute for ASEAN and East Asia, 2019-11-30)Understanding the role of international trade is the key to understanding China’s miraculous economic growth. This paper reviews the literature on international trade in the context of China, with a focus on processing trade, trade liberalisation, and firm performance to provide a better understanding of China’s experience of opening up over the past 4 decades.Understanding the role of international trade is the key to understanding China’s miraculous economic growth. This paper reviews the literature on international trade in the context of China, with a focus on processing trade, trade liberalisation, and ...