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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Ludwig, Sandra / Schmitz, Hendrik

Ed. by Auriol, Emmanuelle / Barigozzi, Francesca / Brunner, Johann / Fleck, Robert / Mastrobuoni, Giovanni / Mendola, Mariapia / Requate, Till / de Vries, Frans / Wenzel, Tobias / Zulehner, Christine

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Volume 14, Issue 4


Volume 19 (2019)

Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

Financial Reforms and International Trade

Abdul Munasib
  • Department of Agricultural & Applied Economics, University of Georgia, 213 Stuckey Building, 1109 Experiment Street, Griffin, GA 30223
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/ Devesh Roy / Xing Chen
Published Online: 2014-06-28 | DOI: https://doi.org/10.1515/bejeap-2013-0104


We provide evidence that financial reforms (over 1976–2005) significantly affected exports, in particular, of industries with higher external capital dependence and low asset tangibility. The coverage of reforms is comprehensive, encompassing the banking sector, interest rates, equity and international capital markets. Our methodology improves upon existing studies by controlling for time-varying unobserved exporter characteristics and unobserved country-specific industry characteristics. We find significant effects of various reforms with diverse impacts by intensity. Further, event studies that incorporate possible anticipated and lagged effects of commencement of reform policies confirm the findings.

Keywords: financial reforms; external capital dependence; asset tangibility; time varying unobserved heterogeneity; event study

JEL Classification: F1; G18; G32


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About the article

Published Online: 2014-06-28

Published in Print: 2014-10-01

Citation Information: The B.E. Journal of Economic Analysis & Policy, Volume 14, Issue 4, Pages 1237–1281, ISSN (Online) 1935-1682, ISSN (Print) 2194-6108, DOI: https://doi.org/10.1515/bejeap-2013-0104.

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