publication . Article . 2014

Trade Finance and Trade Collapse during the Global Financial Crisis: Evidence from the Republic of Korea

E. Young Song;
Open Access
  • Published: 31 Dec 2014 Journal: East Asian Economic Review, volume 18, pages 395-423 (issn: 2508-1640, eissn: 2508-1667, Copyright policy)
  • Publisher: Korean Institute for International Economic Policy
Abstract
This study examines the role of trade finance in the trade collapse of 2008-09 from the perspective of the Korean economy. We use two approaches. Firstly, as background to a more formal analysis, we make a casual observation on the behavior of aggregate data on trade finance, on which Korea has relatively abundant data. Aggregate data do not convincingly support the view that trade finance played an active role in causing the trade collapse. The measures of trade finance and the value of trade both dropped sharply, but the ratio of trade finance over trade was stable and in some cases increased during the crisis period. Secondly, using quarterly data on listed f...
Subjects
free text keywords: Aggregate data, Accounts payable, business.industry, business, Economics, Financial ratio, International economics, Financial crisis, Trade finance, Trade credit, International trade, Geography of finance, Trade barrier, Credit Constraints, Firms' Heterogeneity, Export, Economics as a science, HB71-74
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publication . Article . 2014

Trade Finance and Trade Collapse during the Global Financial Crisis: Evidence from the Republic of Korea

E. Young Song;