The Experts below are selected from a list of 35772 Experts worldwide ranked by ideXlab platform
Marc Auboin - One of the best experts on this subject based on the ideXlab platform.
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why do Trade Finance gaps persist does it matter for Trade and development
Social Science Research Network, 2017Co-Authors: Marc Auboin, Alisa DicaprioAbstract: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.
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improving the availability of Trade Finance in developing countries an assessment of remaining gaps
Research Papers in Economics, 2016Co-Authors: Marc AuboinAbstract:While conditions in Trade Finance markets returned to normality in the main routes of Trade, the structural difficulties of poor countries in accessing Trade Finance have not disappeared – and might have been worsened during and after the global financial crisis. In fact, there is a consistent flow of information indicating that Trade Finance markets have remained characterized by a greater selectivity in risk-taking and flight to “quality” customers. In that environment, the lower end of the market has been struggling to obtain affordable Finance, with the smaller companies in the smaller, poorer countries most affected. In an area where statistics are difficult to find, this paper looks at recent available information and provides background on the persistent and significant market gaps for Trade Finance in developing countries, notably in Africa and developing Asia. It discusses various initiatives in which the WTO and partner institutions are involved to alleviate in part this situation.
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Testing the Trade credit and Trade link: evidence from data on export credit insurance
Review of World Economics, 2014Co-Authors: Marc Auboin, Martina EngemannAbstract:Trade Finance has received special attention during the financial crisis as one of the potential culprits for the great Trade collapse. Several researchers have used micro level data to establish the link between Trade Finance and Trade, especially so during the financial crisis, and have found diverting results. This paper analyses the effect of Trade credit on Trade on a macro level through a whole cycle. We employ Berne Union data on export credit insurance, the most extensive dataset on Trade credits available at the moment, for the period of 2005–2011. Using an instrumentation strategy we can identify a significantly positive effect of insured Trade credit, as a proxy for Trade credits, on Trade. The effect of insured Trade credit on Trade is very strong and remains stable over the cycle, not varying between crisis and non-crisis periods.
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Trade Finance in periods of crisis what have we learned in recent years
Research Papers in Economics, 2013Co-Authors: Marc Auboin, Martina EngemannAbstract:This paper reviews a number of initiatives taken by public and private institutions aimed at minimizing the impact of the on-going crisis of the financial sector on its ability to supply Trade Finance to support Trade at affordable rates. In doing so, it draws a few policy lessons. One of them is that a relatively stable segment of the fi nancial industry is now regularly hit by the contagion of financial crises, with potentially very harmful spill-overs on global Trade through a dry up of its financing. Specifi c policy measures to restore confi dence in this otherwise safe market required a good level of coherence and dialogue between national governments and international and regional development organizations. Lessons from the Asian and Latin American financial crises of the late 1990’s have been learned and academia provided input by developing understanding on a previously under-rated topic in the literature. Learningby-doing and leadership have also been features of the policy response, which altogether had some successes. Still, longer-term challenges remain, such as addressing the structural gaps in the availability of Trade fi nance in low-income countries — ad hoc programs have been designed to fi ll the gap between the perceived and actual risk of extending Trade credit to Traders in these countries. Moreover, regulation of the Trade Finance market needs to continue to take into account its low-risk character, the absence of leverage and its impact on development. Refs 35.
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Trade Finance in periods of crisis what have we learned in recent years
Social Science Research Network, 2012Co-Authors: Marc Auboin, Martina EngemannAbstract:This paper reviews a number of initiatives taken by public and private institutions aimed at minimizing the impact of the on-going crisis of the financial sector on its ability to supply Trade Finance to support Trade at affordable rates. In doing so, it draws a few policy lessons. One of them is that a relatively stable segment of the financial industry is now regularly hit by the contagion of financial crises, with potentially very harmful spill-overs on global Trade through a dry up of its financing. Specific policy measures to restore confidence in this otherwise safe market required a good level of coherence and dialogue between national governments and international and regional development organizations. Lessons from the Asian and Latin American financial crises of the late 1990's have been learned and academia provided input by developing understanding on a previously under-rated topic in the literature. Learning-by-doing and leadership have also been features of the policy response, which altogether had some successes. Still, longer-term challenges remain, such as addressing the structural gaps in the availability of Trade Finance in low-income countries - ad hoc programs have been designed to fill the gap between the perceived and actual risk of extending Trade credit to Traders in these countries. Moreover, regulation of the Trade Finance market needs to continue to take into account its low-risk character, the absence of leverage and its impact on development.
Hyun Song Shin - One of the best experts on this subject based on the ideXlab platform.
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Trade credit Trade Finance and the covid 19 crisis
Social Science Research Network, 2020Co-Authors: Frederic Boissay, Nikhil Patel, Hyun Song ShinAbstract:As the Covid-19 pandemic hits economic activity, the vulnerabilities of longer and more geographically extended Trade credit chains are coming to the fore, especially those related to international Trade. While risk mitigation is available from financial intermediaries, the bulk of the exposures associated with supply chains is borne by the participating firms themselves, through inter-firm credit. Given the prevalence of the US dollar in Trade financing, measures such as central bank swap lines that ease global dollar credit conditions may cushion the impact of the pandemic on global value chains.
Martina Engemann - One of the best experts on this subject based on the ideXlab platform.
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Testing the Trade credit and Trade link: evidence from data on export credit insurance
Review of World Economics, 2014Co-Authors: Marc Auboin, Martina EngemannAbstract:Trade Finance has received special attention during the financial crisis as one of the potential culprits for the great Trade collapse. Several researchers have used micro level data to establish the link between Trade Finance and Trade, especially so during the financial crisis, and have found diverting results. This paper analyses the effect of Trade credit on Trade on a macro level through a whole cycle. We employ Berne Union data on export credit insurance, the most extensive dataset on Trade credits available at the moment, for the period of 2005–2011. Using an instrumentation strategy we can identify a significantly positive effect of insured Trade credit, as a proxy for Trade credits, on Trade. The effect of insured Trade credit on Trade is very strong and remains stable over the cycle, not varying between crisis and non-crisis periods.
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Trade Finance in periods of crisis what have we learned in recent years
Research Papers in Economics, 2013Co-Authors: Marc Auboin, Martina EngemannAbstract:This paper reviews a number of initiatives taken by public and private institutions aimed at minimizing the impact of the on-going crisis of the financial sector on its ability to supply Trade Finance to support Trade at affordable rates. In doing so, it draws a few policy lessons. One of them is that a relatively stable segment of the fi nancial industry is now regularly hit by the contagion of financial crises, with potentially very harmful spill-overs on global Trade through a dry up of its financing. Specifi c policy measures to restore confi dence in this otherwise safe market required a good level of coherence and dialogue between national governments and international and regional development organizations. Lessons from the Asian and Latin American financial crises of the late 1990’s have been learned and academia provided input by developing understanding on a previously under-rated topic in the literature. Learningby-doing and leadership have also been features of the policy response, which altogether had some successes. Still, longer-term challenges remain, such as addressing the structural gaps in the availability of Trade fi nance in low-income countries — ad hoc programs have been designed to fi ll the gap between the perceived and actual risk of extending Trade credit to Traders in these countries. Moreover, regulation of the Trade Finance market needs to continue to take into account its low-risk character, the absence of leverage and its impact on development. Refs 35.
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Trade Finance in periods of crisis what have we learned in recent years
Social Science Research Network, 2012Co-Authors: Marc Auboin, Martina EngemannAbstract:This paper reviews a number of initiatives taken by public and private institutions aimed at minimizing the impact of the on-going crisis of the financial sector on its ability to supply Trade Finance to support Trade at affordable rates. In doing so, it draws a few policy lessons. One of them is that a relatively stable segment of the financial industry is now regularly hit by the contagion of financial crises, with potentially very harmful spill-overs on global Trade through a dry up of its financing. Specific policy measures to restore confidence in this otherwise safe market required a good level of coherence and dialogue between national governments and international and regional development organizations. Lessons from the Asian and Latin American financial crises of the late 1990's have been learned and academia provided input by developing understanding on a previously under-rated topic in the literature. Learning-by-doing and leadership have also been features of the policy response, which altogether had some successes. Still, longer-term challenges remain, such as addressing the structural gaps in the availability of Trade Finance in low-income countries - ad hoc programs have been designed to fill the gap between the perceived and actual risk of extending Trade credit to Traders in these countries. Moreover, regulation of the Trade Finance market needs to continue to take into account its low-risk character, the absence of leverage and its impact on development.
Koe Van Der Vee - One of the best experts on this subject based on the ideXlab platform.
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loss shocks in export credit insurance markets evidence from a global insurance group
Journal of Risk and Insurance, 2019Co-Authors: Koe Van Der VeeAbstract:Private export credit insurance—covering the risk of nonpayment—plays an important role in facilitating international Trade, especially within Europe. Due to lack of data, however, little is known about the influence of loss shocks on export credit insurance markets. This article studies the effect of claims on the availability and premium of export credit insurance, using unique bilateral country‐level data covering worldwide insurance underwriting from 1992 to 2006 by a leading Trade credit insurance group. Applying fixed effects models at the country subsidiary level, I find that a doubling of the claims ratio on insured exports between a pair of countries results, on average, in a decline in the subsidiary's share of bilateral exports insured by about 11 percent and rise in premium level by about 4 percent. These claims effects increase when the insurer makes a loss and rise with the size of the loss. Importantly, evidence shows that an extreme loss shock in one market also increases the claims sensitivity of insurance coverage on exports to other markets, suggesting a role for capital constraints. Overall, these results help our understanding of potential Trade Finance constraints in times of crisis, such as during the 2008–2009 global Trade collapse.
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the private export credit insurance effect on Trade
Journal of Risk and Insurance, 2015Co-Authors: Koe Van Der VeeAbstract:type="main" xml:lang="en"> International Trade relies on Trade Finance (credit or insurance) by financial institutions. Evidence on the link between Trade Finance and Trade is scarce, however, because Trade Finance data are hard to come by. This article uses a unique bilateral data set on worldwide exports insured by a world's leading private Trade credit insurer in the period from 1992 to 2006. Applying various Trade models, I consistently find a positive and statistically significant effect of private export credit insurance on exports. The results suggest that the private export credit insurance effect on Trade is larger than the value of exports insured.
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loss shocks and the quantity and price of private export credit insurance evidence from a global insurer
2015Co-Authors: Koe Van Der VeeAbstract:Private Trade credit insurance - covering the risk of non-payment - plays an important role in facilitating domestic and international Trade, especially within Europe. Due to lack of data, however, very little is known about the influence of shocks on the market for private Trade credit insurance. This paper studies the influence of claims on the availability and price of export credit insurance, using unique bilateral country-level data covering worldwide insurance underwriting by a global Trade credit insurer from 1992 to 2006. Country-pair and time-varying country fixed effects allow me to control for bilateral heterogeneity and country-specific insurance supply-and-demand shocks in both exporting and destination countries. In doing so, I find that a doubling of claims results, on average, in a decline in the share of bilateral exports insured by about 11% and rise in premium level by about 4%. These claims effects increase when the insurer makes a loss and further rise with the size of the loss. I also find evidence indicating that the global Trade credit insurer transmits extreme losses across countries by reducing its supply of export credit insurance. Overall, these results help our understanding of potential Trade Finance constraints in times of crisis, such as during the 2008-09 global Trade collapse.
Joost Pauwelyn - One of the best experts on this subject based on the ideXlab platform.
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emergency action by the wto director general global administrative law and the wto s initial response to the 2008 09 financial crisis
Social Science Research Network, 2009Co-Authors: Joost Pauwelyn, Ayelet BermanAbstract:The WTO's initial reaction to the 2008-2009 financial crisis was taken mainly by its managerial arm, that is, by the Director-General (DG) and the Secretariat and not by its legislative or judicial bodies. This is a novelty for the WTO and illustrates the emergence, even at the otherwise hard-law WTO, of informal administrative actions that go beyond the traditional member-dominated WTO. The actions were in two areas: The DG convened Trade Finance expert meetings with other organizations and private banks, and the Secretariat prepared reports on Trade-related measures enacted across the globe in response to the crisis. The article examines these actions in light of certain concepts and principles of the GAL project. Overall, the Director-General was sensitive in his actions to GAL principles.