Foreign Banks and Trade : Bridging the Information Gap?

De Nicola, Francesca ; Tan, Shawn W.

World Bank, Washington, DC

关键词: foreign banking;    trade;    credit constraints;    regional development;    trade finance;   

DOI  :  10.1596/1813-9450-7967
RP-ID  :  WPS7967

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Foreign banks can play an important rolein facilitating international trade. Most research hasfocused on the financing role banks can play, but less isknown about the information role. This paper estimates agravity model using sub-regional data from Turkey between2002 and 2010 to explore whether foreign banks promote tradethrough the information channel. The presence of a foreignbanks from a trade partner promote the exports of thesub-region. In addition, the analysis finds that thefootprint of these foreign banks matters more for exportsthan the presence of these banks and the level of financialdevelopment of the sub-region. Banks from countriesneighboring trade partners can also decrease exports. Whentaking into account financial conditions and examining thedifferential impacts during the recent financial crisis, theanalysis finds that the footprint of foreign banks has thelargest impact on trade.