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Trade Finance during the 2008–9 Trade Collapse: Key Takeaways

Author

Listed:
  • Chauffour, Jean-Pierre

    (World Bank)

  • Malouche, Mariem

    (World Bank)

Abstract

Trade finance matters for trade, and when financial markets and world trade collapsed three years ago, a shortage in trade finance was hailed as a possible culprit. Because of the potential for global repercussions, world leaders called on the international community to act swiftly to avoid a depression. Governments and international institutions intervened to mitigate the impacts of the crisis. Then the economy bounced back, and trade picked up. But what did we learn from the crisis? In retrospect, what role did trade finance actually play? Did the freeze in the financial markets cause the unprecedented drop in global trade in 2008–9? This note presents evidence on the role of trade finance during 2008–9 and highlights a few takeaways on the data and knowledge gap of trade finance and government interventions during financial crises.

Suggested Citation

  • Chauffour, Jean-Pierre & Malouche, Mariem, 2011. "Trade Finance during the 2008–9 Trade Collapse: Key Takeaways," World Bank - Economic Premise, The World Bank, issue 66, pages 1-6, September.
    • Handle: RePEc:wbk:prmecp:ep66
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    References listed on IDEAS

    as
    1. Jean-Pierre Chauffour & Mariem Malouche, 2011. "Trade Finance during the Great Trade Collapse," World Bank Publications - Books, The World Bank Group, number 2324.
    2. Chauffour, Jean-Pierre & Farole, Thomas, 2009. "Trade finance in crisis : market adjustment or market failure ?," Policy Research Working Paper Series 5003, The World Bank.
    3. Malouche, Mariem, 2009. "Trade and trade finance developments in 14 developing countries post September 2008 - a World Bank survey," Policy Research Working Paper Series 5138, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Marc Auboin, 2021. "Trade Finance, Gaps and the Covid-19 Pandemic: A Review of Events and Policy Responses to Date," CESifo Working Paper Series 8918, CESifo.
    2. Muhammad Akram & Abdul Rashid, 2018. "Financial turmoil, external finance and UK exports," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 42(4), pages 651-681, October.

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    More about this item

    Keywords

    trade; trade finance; recession; financial crisis; markets; G20; World Bank; capital flows; liquidity; developing countries;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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