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Understanding SME Trade Finance in ASEAN: An Overview

Author

Listed:
  • Tony Cavoli

    (University of South Australia
    Economic Research Institute for ASEAN and East Asia (ERIA))

  • David Christian

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Rashesh Shrestha

Abstract

SMEs are the most important source of employment in all ASEAN countries, but a lack of access to external sources of finance may limit their expansion and growth. In particular, the existence of a trade finance gap can curtail their participation in international trade. Countries in ASEAN and East Asia need to address this issue to include SMEs in their export-oriented growth strategy. This paper provides a framework for understanding the trade finance gap by examining the nature and strength of relationships between different actors in the trade finance ecosystem. We present an overview of the literature that studied the relationship between financial development and trade, the availability and use of various trade finance instruments in international trade, and some stylised facts about trade finance in ASEAN.

Suggested Citation

  • Tony Cavoli & David Christian & Rashesh Shrestha, 2022. "Understanding SME Trade Finance in ASEAN: An Overview," Working Papers DP-2021-55, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2021-55
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade Finance; International Financial Institutions; trade; financial crisis;
    All these keywords.

    JEL classification:

    • F19 - International Economics - - Trade - - - Other
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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