Beata Javorcik (Oxford) will present:

"Grin and Bear It: Producer-financed Exports from an Emerging Market""

at 12:15pm on Tuesday, April 26, 2016 in (051 Buchanan) Volanakis - TUCK

Lunch will be served at noon.


If you will be attending the Lunch Seminar please RSVP to Richard Reilly at TUCK so he can order the appropriate amount of food.

[log in to unmask]


Please sign up for a meeting, or dinner at:

https://docs.google.com/spreadsheets/d/1aysmVmILJG5Y9DaOw6c1cPYYz4jjsqFa-JsjTyNdaag/edit?usp=sharing


Abstract

Trading goods across international borders is risky and takes time. Trading partners need to agree on how to share the risk and how to finance the period when
the goods are in transit. This paper argues that the ability to bear the risk by providing export financing can give emerging market producers a competitive edge in
foreign destinations. The analysis, based on the data covering the universe of Turkey's exports disaggregated by exporter, product, destination, and financing terms for the
period 2003-2007, supports this view. The identification strategy takes advantage of an exogenous shock, the end of the Multi-Fiber Arrangement (MFA), a system of
bilateral quotas governing the global trade in textiles and clothing until January 1, 2005. The results, based on a difference-in-differences approach, suggest that the share
of exporter-financed exports to the European Union (EU) increased in the post-MFA period in products where Turkey's competitors faced binding MFA quotas, relative to
the products where the quotas were not binding in 2004. As Turkey was not subject to the MFA quotas due to its customs union with the EU, these results are consistent
with an increase in competition pushing Turkish exporters to offer export financing.




########################################################################

To unsubscribe from the ECONOMICS-SEMINARS list, click the following link:
https://listserv.dartmouth.edu/scripts/wa.exe?SUBED1=ECONOMICS-SEMINARS