01971cas a2200241 a 4500 AALejournalIMF013675 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475576276 1018-5941 BD-DhAAL BD-DhAAL Kiendrebeogo, Youssouf. How Do Banking Crises Affect Bilateral Exports? / Youssouf Kiendrebeogo. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (41 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates whether banking crises are associated with declines in bilateral exports. We first develop a simple open economy model in which banking crises translate into negative liquidity shocks, leading to collapses in exports through supply-side and demand-side shocks. We then estimate a gravity model using a sample of developed and developing countries over the period 1988-2010. The results suggest that crisis-hit countries experience lower levels of bilateral exports, particularly in developing countries where supply-side shocks are found to be relatively more important than demand shocks. In developing countries, exports of manufactured goods are disproportionately hurt by banking crises and this negative effect is stronger in industries relying more on external finance. These findings are robust to correcting for potential endogeneity, to changes in the sample, and to alternative estimation methods. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2013/150 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/150/001.2013.issue-150-en.xml IMF e-Library