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Full-Text Articles in Social and Behavioral Sciences
Finance And Export Survival: The Case Of Mena Region And Sub-Saharan Africa, Melise Jaud, Madina Kukenova, Martin Strieborny
Finance And Export Survival: The Case Of Mena Region And Sub-Saharan Africa, Melise Jaud, Madina Kukenova, Martin Strieborny
Martin Strieborny
The paper looks at unique firm-product-destination export data collected by custom authoritiesin four countries from the Middle East and North Africa (MENA) - Jordan,Kuwait, Morocco, Yemen as well as in six countries of Sub-Saharan Africa(SSA) - Ghana, Mali, Malawi, Senegal, Tanzania, Uganda. We use these data toexamine to impact of financial development on the long-term success ofexports from developing countries. We find that those agricultural exportsthat face particularly costly implementation of Sanitary and PhytosanitaryStandards (SPS) are also the ones that disproportionately benefit from ahigher level of domestic financial development. This result confirms theprevious findings from a smaller SSA sample (Jaudetal. …
Finance, Comparative Advantage, And Resource Allocation, Melise Jaud, Madina Kukenova, Martin Strieborny
Finance, Comparative Advantage, And Resource Allocation, Melise Jaud, Madina Kukenova, Martin Strieborny
Martin Strieborny
Can financial institutions and markets enhance the discipline imposed by competitive product markets and thus improve resource allocation in the real economy? We address this question in the context of international trade, using disaggregated product-level data from 71 countries exporting to the USA. We show that exported products exit the US market sooner if they stand far away from the exporting country's comparative advantage. This pattern is stronger when the exporting country has a well-developed banking system, but it is unaffected by the depth of stock markets. These results are in accordance with theories stressing the disciplining role of debt.
Investment In Relationship-Specific Assets: Does Finance Matter?, Martin Strieborny, Madina Kukenova
Investment In Relationship-Specific Assets: Does Finance Matter?, Martin Strieborny, Madina Kukenova
Martin Strieborny
Banks (but not stock markets) promote economic growth by facilitating relationship-specific investment between buyers and suppliers of intermediate goods. Combined insights from literature on signaling role of banks and on relationship-specific investment motivate this economic channel: A supplier is reluctant to undertake relationship-specific investment as she cannot observe financial stability and planning horizon of buyer. Banks can mitigate this information asymmetry. Empirical results from 28 industries in 90 countries confirm that industries dependent on relationship-specific investment from their suppliers grow disproportionately faster in countries with a well-developed banking sector. The channel works via increased entry of new firms and higher …