{
  "title": "Financial Crises and Emerging Market Trade",
  "publication": "IMF Staff Position Notes, March 11, 2009",
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  "summary": "This chapter discusses various aspects of financial crises and emerging market trade. The current global financial crisis and the sharp reduction in trade flows have raised questions about the extent to which access to capital affects the ability of companies to produce and sell exports and to buy i",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Discusses various aspects of financial crises and emerging market trade in the context of the current global financial crisis and the sharp reduction in trade flows.\n- Focuses on how access to capital affects firms’ ability to produce and sell exports and to buy imports.\n- Emphasizes that trade finance is one component of credit conditions that influence trade volumes."
    },
    {
      "heading": "Key findings",
      "content": "- Financial conditions play a significant, however, not dominant role in stimulating trade volumes among emerging market countries.\n- Trade finance is not the only form of credit with implications for trade volumes; working capital and long-term investment financing also matter through their impact on industrial production."
    },
    {
      "heading": "Quantitative estimates and scenarios",
      "content": "- The combination of zero net private capital flows to emerging markets and a domestic banking crisis could lower import volume growth by between 5 and 6 percent on impact.\n- The effect on export volumes from the same combination is slightly lower than the impact on import volume growth."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Policymakers should consider supporting credit flows in general rather than focusing specifically on increasing trade finance, given that broader credit market conditions (including for working capital and long-term investment financing) affect international trade and industrial production."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Balance of payments, Banking crises, Exports, Financial crises, Imports, International trade, Private capital flows, Trade finance\n- Keywords: Banking crises, commodity exporter, export, export deflator, exporter, Exports, Global, import, import deflator, Imports, Private capital flows, short-run export price elasticity, SPN, trade, Trade finance, trade finance variable\n\nFinancial Crises and Emerging Market Trade — IMF Staff Position Note No. 2009/004.\n\n---\n\n Content in this bundle\n\n- Financial Crises and Emerging Market Trade\n  - Financial Crises and Emerging Market Trade (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Financial Crises and Emerging Market Trade (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/imf-staff-position-notes/issues/2016/12/31/financial-crises-and-emerging-market-trade-22773"
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    "Authors: Alun H. Thomas",
    "Published: March 11, 2009",
    "Series: IMF Staff Position Notes",
    "DOI: https://doi.org/10.5089/9781455280476.004",
    "Discusses various aspects of financial crises and emerging market trade in the context of the current global financial crisis and the sharp reduction in trade flows.",
    "Focuses on how access to capital affects firms’ ability to produce and sell exports and to buy imports.",
    "Emphasizes that trade finance is one component of credit conditions that influence trade volumes.",
    "Financial conditions play a significant, however, not dominant role in stimulating trade volumes among emerging market countries.",
    "Trade finance is not the only form of credit with implications for trade volumes; working capital and long-term investment financing also matter through their impact on industrial production.",
    "The combination of zero net private capital flows to emerging markets and a domestic banking crisis could lower import volume growth by between 5 and 6 percent on impact.",
    "The effect on export volumes from the same combination is slightly lower than the impact on import volume growth.",
    "Policymakers should consider supporting credit flows in general rather than focusing specifically on increasing trade finance, given that broader credit market conditions (including for working capital and long-term investment financing) affect international trade and industrial production.",
    "Subject: Balance of payments, Banking crises, Exports, Financial crises, Imports, International trade, Private capital flows, Trade finance",
    "Keywords: Banking crises, commodity exporter, export, export deflator, exporter, Exports, Global, import, import deflator, Imports, Private capital flows, short-run export price elasticity, SPN, trade, Trade finance, trade finance variable",
    "**Financial Crises and Emerging Market Trade**"
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