TY - BOOK ID - 138242672 TI - Are Banks Engines of Export? : Financial Structures And Export Dynamics AU - Minetti, Raoul. AU - Mulabdic, Alen. AU - Ruta, Michele. AU - Zhu, Susan. PY - 2018 PB - Washington, D.C. : The World Bank, DB - UniCat KW - Banks and banking reform KW - Capital flows KW - Capital markets and capital flows KW - Export dynamics KW - Finance and financial sector development KW - Financial regulation and supervision KW - Financial structures KW - Foreign banks KW - International economics and trade KW - International trade and trade rules KW - Macroeconomic management KW - Macroeconomics and economic growth UR - https://www.unicat.be/uniCat?func=search&query=sysid:138242672 AB - This paper studies the impact of financial structures on the dynamics of the export sector using rich data from over 60 countries. The results reveal that bank-oriented financial systems boost the size of the export sector more than market-oriented financial systems. However, especially in middle- and low-income countries, this effect mostly stems from banks slowing down exporters' exit rather than promoting firms' entry into export. The reduced exit from the export sector appears to reflect domestic banks' tendency to evergreen loans to exporters ("soft budget constraint") more than banks' buffering role in difficult times. Foreign banks mitigate this effect and enhance the dynamism of the export sector. ER -