Trade and Trade Finance in the 2008-09 Financial Crisis

WPIEA2011016 Image
Price:  $18.00

Author/Editor: Thomas William Dorsey, Mika Saito, Armine Khachatryan, Irena Asmundson, Ioana Niculcea
Release Date: © January, 2011
ISBN : 978-1-45521-250-7
Stock #: WPIEA2011016
Stock Status: On back-order

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Global merchandise trade sharply declined in late 2008 and early 2009, and some press and financial market reports assigned a large role for the decline to trade finance. However, the available evidence suggests that shocks to trade finance were not the major factor in the decline in trade. Surveys of commercial banks by the IMF and others found that while bank-intermediated trade finance fell in value during the crisis, it fell by less than merchandise trade. As a result, the share of world trade supported by bank-intermediated trade finance increased despite higher pricing margins. Other explanations appear to account for the bulk of the reduction in international trade.


Capital markets , Financial crisis , Financial institutions and markets , International financial system , International trade

More publications in this series: Working Papers

More publications by: Thomas William Dorsey ; Mika Saito ; Armine Khachatryan ; Irena Asmundson ; Ioana Niculcea