The Sectoral Trade Losses from Financial Crises

The “Great Trade Collapse” triggered by the 2008-09 crisis calls for a careful assessment of the trade losses from financial crises. We adopt a more detailed perspective by looking at the response of different types of trade (i.e. agricultural, mining, and manufactured goods, and services) following...

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Bibliographic Details
Main Author: Atsebi, Jean-Marc
Other Authors: Combes, Jean-Louis, Minea, Alexandru
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2021
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Economic & financial crises & disasters 
653 |a Economics 
653 |a Financial crises 
653 |a Economics: General 
653 |a Informal sector 
653 |a Trade: General 
653 |a Exports and Imports 
653 |a International economics 
653 |a Economics of specific sectors 
653 |a Foreign Exchange 
653 |a Currency crises 
653 |a International trade 
653 |a Exports 
653 |a Banks and Banking 
653 |a Macroeconomics 
653 |a Banking crises 
653 |a Financial Risk Management 
653 |a Imports 
653 |a Financial Crises 
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700 1 |a Minea, Alexandru 
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520 |a The “Great Trade Collapse” triggered by the 2008-09 crisis calls for a careful assessment of the trade losses from financial crises. We adopt a more detailed perspective by looking at the response of different types of trade (i.e. agricultural, mining, and manufactured goods, and services) following various types of financial crises (i.e. debt, banking, and currency crises). Estimations performed on the 1980-2018 period using a combination of impact assessment and local projections to capture a causal dynamic effect running from financial crises to the trade activity show that the collapse of total trade is long-lasting and mainly driven by the fall of manufacturing and to some extent services trade. These causal effects are found to operate through three channels: a structural, a demand-side, and a supply-side channel. By contributing to the understanding of the trade effects of financial crises, our analysis provides insightful support for the design and implementation of policies aimed at coping with these effects