MENA Export Performance and Specialization : The Role of Financial Sector Development and Governance

Wood, Christina A. ; Yang, Judy

World Bank, Washington, DC

关键词: LIVING STANDARDS;    LINE OF CREDIT;    CAPITAL MARKETS;    BORROWER;    LINES OF CREDIT;   

DOI  :  10.1596/1813-9450-7616
RP-ID  :  WPS7616

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Industry and financial profiles of MENAfirms may underpin the observation that MENA country exportsare below potential and skewed toward low value-added goodsthat are unable to spur rapid job creation and inclusivegrowth. To assess this link, the paper combines analysishighlighting external financing as a determinant of exportperformance, and analysis highlighting sector assettangibility and governance. Why? Because high value-addedsectors tend to have higher shares of intangible assets andto create innovative products requiring substantial researchand development or investments, thereby making these sectorsmore dependent on external financing. Using sector- andfirm-level export data with country-level indicators, theresults indicate that countries with more developedfinancial sectors and stronger governance tend to havehigher exports from sectors that are more reliant on financeexternal to the firm, and lower exports from sectors withhigher shares of tangible assets. Interestingly, financialsector development boosts exports less in MENA than innon-MENA countries. To foster expansion of higher valueexports, the results suggest a critical need for: (i) deeperfinancial sector development that strengthens market-basedsystems, such as asset registries and credit reportingagencies, and (ii) strengthening of legal and governance frameworks.