TY - BOOK ID - 84658471 TI - How Do Banking Crises Affect Bilateral Exports? AU - Kiendrebeogo, Youssouf. AU - International Monetary Fund. PY - 2013 SN - 1484342909 1616358815 1484364287 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Exports. KW - Banks and banking. KW - Agricultural banks KW - Banking KW - Banking industry KW - Commercial banks KW - Depository institutions KW - Finance KW - Financial institutions KW - Money KW - International trade KW - Banks and Banking KW - Exports and Imports KW - Financial Risk Management KW - Macroeconomics KW - Empirical Studies of Trade KW - Financial Crises KW - Trade: General KW - Economic & financial crises & disasters KW - International economics KW - Banking crises KW - Exports KW - Financial crises KW - Trade balance KW - Global financial crisis of 2008-2009 KW - Balance of trade KW - Global Financial Crisis, 2008-2009 KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84658471 AB - This paper investigates whether banking crises are associated with declines in bilateral exports. We first develop a simple open economy model in which banking crises translate into negative liquidity shocks, leading to collapses in exports through supply-side and demand-side shocks. We then estimate a gravity model using a sample of developed and developing countries over the period 1988-2010. The results suggest that crisis-hit countries experience lower levels of bilateral exports, particularly in developing countries where supply-side shocks are found to be relatively more important than demand shocks. In developing countries, exports of manufactured goods are disproportionately hurt by banking crises and this negative effect is stronger in industries relying more on external finance. These findings are robust to correcting for potential endogeneity, to changes in the sample, and to alternative estimation methods. ER -