Does Financial Development Enhance Foreign Trade in Selected Transitional Economies?

Kunofiwa Tsaurai; Patience Hlupo

doi:10.18778/1508-2008.23.28

Autor

Kunofiwa Tsaurai Ph.D., Associate Professor at the University of South Africa, Department of Finance, Risk Management and Banking, Pretoria, South Africa https://orcid.org/0000-0001-8041-1181
Patience Hlupo Lecturer at Bindura University of Technology, Bindura, Zimbabwe

DOI:

https://doi.org/10.18778/1508-2008.23.28

Słowa kluczowe:

rozwój finansowy, handel zagraniczny, gospodarki przejściowe, dane panelowe

Abstrakt

W opracowaniu zbadano wpływ rozwoju finansowego na handel zagraniczny w gospodarkach przejściowych z wykorzystaniem danych panelowych (dla lat 1994–2014). Chociaż dostępne są badania empiryczne dotyczące wpływu rozwoju finansowego na handel zagraniczny, żadne ze znanych autorom badań nie stanowiło próby zgłębienia tematu w odniesieniu do gospodarek przejściowych. Nie podjęto próby zbadania, czy rozwój kapitału ludzkiego jest kanałem, poprzez który rozwój finansowy wpływa na handel zagraniczny lub handel międzynarodowy. W przypadku podejścia opartego o efekty stałe stwierdzono, że rozwój finansowy nie ma istotnego pozytywnego wpływu na handel zagraniczny, podczas gdy podejście oparte o efekty losowe wskazuje na istotną pozytywną zależność między rozwojem finansowym a handlem zagranicznym. Ustalenia te są zbieżne z większością literatury przedmiotu. Jednakże, metoda pooled OLS wskazuje, że rozwój finansowy miał znaczący negatywny wpływ na handel zagraniczny.

Zarówno w przypadku podejścia opartego o efekty stałe, jak i losowe, rozwój kapitału ludzkiego okazał się kanałem, przez który rozwój finansowy miał istotny pozytywny wpływ na handel zagraniczny. Wyniki ten są zgodne z argumentacją Patricka (1966), że handel zagraniczny jest napędzany przez wysoki poziom kapitału ludzkiego i rozwoju finansowego. Z badania wynika, że władze państw przejściowych powinny opracować i wdrożyć politykę rozwoju kapitału ludzkiego, tak aby rozwój finansowy miał znaczący pozytywny wpływ na handel zagraniczny. W przeciwieństwie do dostępnej literatury, niniejsze badanie wykazało, że rozwój kapitału ludzkiego miał znaczący negatywny wpływ na handel zagraniczny przy zastosowaniu podejścia OLS. Przyszłe badania na ten temat powinny uwzględniać kwestie związane z endogennością i dynamicznym charakterem danych dotyczących handlu zagranicznego.

Pobrania

Brak dostępnych danych do wyświetlenia.

Bibliografia

Abubakar, A., Kassim, S.H., Yusoff, M.B. (2015), Financial development, human capital accumulation and economic growth: Empirical evidence from the economic community of West African States (ECOWAS), “Procedia Social and Behavioral Sciences”, 172 (January), pp. 96–103. https://doi.org/10.1016/j.sbspro.2015.01.341
Google Scholar DOI: https://doi.org/10.1016/j.sbspro.2015.01.341

Akeem, U.O. (2011), Performance evaluation of foreign trade and economic growth in Nigeria, “Research Journal of Finance and Accounting”, 2 (2), pp. 1–15.
Google Scholar

Askenazy, P., Caldera, A., Gaulier, G., Irac, D. (2011), Financial Constraints and Foreign Market Entries or Exits: Firm-Level Evidence from France, Working Papers 328, Banque de France. https://doi.org/10.2139/ssrn.1832647
Google Scholar DOI: https://doi.org/10.2139/ssrn.1832647

Babatunde, M., Fowowe, B. (2010), Foreign trade and Financial Development Link: Evidence from Sub-Saharan Africa, “Journal of Economic Management”, 7 (1), pp. 1–15.
Google Scholar

Baldwin, R., Krugman, P. (1989), Persistent trade effects of large exchange rate shocks, “The Quarterly Journal of Economics”, 104 (4), pp. 635–654. https://doi.org/10.2307/2937860
Google Scholar DOI: https://doi.org/10.2307/2937860

Beck, T. (2002), Financial development and foreign trade: Is there a link?, “Journal of International Economics”, 57 (1), pp. 107–131. https://doi.org/10.1016/S0022-1996(01)00131-3
Google Scholar DOI: https://doi.org/10.1016/S0022-1996(01)00131-3

Becker, B., Chen, D., Greenberg, J. (2013), Financial development, fixed costs and foreign trade, “Review of Corporate Finance Studies”, 2 (1), pp. 1–28. https://doi.org/10.1093/rcfs/cfs005
Google Scholar DOI: https://doi.org/10.1093/rcfs/cfs005

Bellone, F., Musso, P., Nesta, L., Schiavo, S. (2010), Financial constraints and firm export behaviour, “The World Economy”, 33 (3), pp. 347–373. https://doi.org/10.1111/j.1467-9701.2010.01259.x
Google Scholar DOI: https://doi.org/10.1111/j.1467-9701.2010.01259.x

Benhabib, J., Spiegel, M.M. (1994), The role of human capital in economic development evidence from aggregate cross-country data, “Journal of Monetary Economics”, 34 (2), pp. 143–173. https://doi.org/10.1016/0304-3932(94)90047-7
Google Scholar DOI: https://doi.org/10.1016/0304-3932(94)90047-7

Berman, N., Héricourt, J. (2010), Financial factors and the margins of trade: Evidence from cross-country firm-level data, “Journal of Development Economics”, 93 (2), pp. 206–217. https://doi.org/10.1016/j.jdeveco.2009.11.006
Google Scholar DOI: https://doi.org/10.1016/j.jdeveco.2009.11.006

Bordo, M., Rousseau, P. (2012), Historical Evidence on the Finance-Trade-Growth Nexus, “Journal of Banking and Finance”, 36 (4), pp. 1236–1243. https://doi.org/10.1016/j.jbankfin.2011.11.012
Google Scholar DOI: https://doi.org/10.1016/j.jbankfin.2011.11.012

Brooks, W., Dovis, A. (2019), Credit market frictions and trade liberalizations, “Journal of Monetary Economics”, 27 (3), pp. 1–16.
Google Scholar

Cartiglia, F. (1997), Credit constraints and human capital accumulation in the open economy, “Journal of International Economics”, 43 (1–2), pp. 221–236. https://doi.org/10.1016/S0022-1996(96)01469-9
Google Scholar DOI: https://doi.org/10.1016/S0022-1996(96)01469-9

Chatterjee, A. (2017), Endogenous comparative advantage, gains from trade and symmetry-breaking, “Journal of International Economics”, 109 (November), pp. 102–115. https://doi.org/10.1016/j.jinteco.2017.08.009
Google Scholar DOI: https://doi.org/10.1016/j.jinteco.2017.08.009

Choi, B. (2018), Financial development, endogenous dependence on external financing, and trade, “Economica”, March, pp. 1–58.
Google Scholar

Domenico, S., Emiliano, C., Alina, C. (2009), Human Capital and Openness to Foreign Trade: Evidence from the Enlarged Europe, “Analele Universităţii Din Oradea”, 7 (3), pp. 36–55.
Google Scholar

Edoumiekumo, S.G., Opukri, C.O. (2013), Economic growth factor in Nigeria: the role of global trade, “American Journal of Humanities and Social Sciences”, 1 (2), pp. 51–55. https://doi.org/10.11634/232907811301303
Google Scholar DOI: https://doi.org/10.11634/232907811301303

Engel, D., Procher, V., Schmidt, C. (2013), Does firm heterogeneity affect foreign market entry and exit symmetrically? Empirical evidence from French firms, “The Word Economy”, 85 (1), pp. 37–47. https://doi.org/10.1016/j.jebo.2012.10.016
Google Scholar DOI: https://doi.org/10.1016/j.jebo.2012.10.016

Eryigit, S.B., Dulgeroglu, E. (2015), How to Measure the Level of Financial Development, [in:] Handbook of Research on Strategic Developments and Regulatory Practice in Global Finance, IGI Global, United States, pp. 260–286. https://doi.org/10.4018/978-1-4666-7288-8.ch017
Google Scholar DOI: https://doi.org/10.4018/978-1-4666-7288-8.ch017

Evans, D., Green, C., Murinde, V. (2002), Human capital and financial development in economic growth: New evidence using the Translog Production Function, “International Journal of Finance and Economics”, 7 (2), pp. 123–140. https://doi.org/10.1002/ijfe.182
Google Scholar DOI: https://doi.org/10.1002/ijfe.182

Ezeoha, A.E., Cattaneo, N. (2012), FDI flows to Sub-Saharan Africa: the impact of finance, institutions and natural resource endowment, “Comparative Economic Studies”, 54 (3), pp. 597–632. https://doi.org/10.1057/ces.2012.18
Google Scholar DOI: https://doi.org/10.1057/ces.2012.18

Fauceglia, D. (2015), Credit constraints, firm exports and financial development: Evidence from developing countries, “The Quarterly Review of Economics and Finance”, 55 (February), pp. 53–66. https://doi.org/10.1016/j.qref.2014.08.003
Google Scholar DOI: https://doi.org/10.1016/j.qref.2014.08.003

Forlani, E. (2010), Liquidity constraints and firm’s export activity, Centro Studi Luca d’Agliano Working Papers 291. https://doi.org/10.2139/ssrn.1646950
Google Scholar DOI: https://doi.org/10.2139/ssrn.1646950

Gebrehiwot, G., Gebru, B. (2015), Ethiopia’s foreign trade potential: Inferences from a dynamic gravity approach, “International Journal of Economics and Business Research”, 9 (4), pp. 355–375. https://doi.org/10.1504/IJEBR.2015.069667
Google Scholar DOI: https://doi.org/10.1504/IJEBR.2015.069667

Ghanbari, A., Ahmadi, M. (2017), The Effect of Innovation on Foreign trade: Selected Medium-High-Technology Industries, Evidence on Iran, “Iranian Economic Review”, 21 (1), pp. 21–44.
Google Scholar

Gokmenoglu, K.K., Amin, M.Y., Taspinar, N. (2015), The relationship among foreign trade, financial development and economic growth: the case of Pakistan, “Procedia Economics and Finance”, 25, pp. 489–496. https://doi.org/10.1016/S2212-5671(15)00761-3
Google Scholar DOI: https://doi.org/10.1016/S2212-5671(15)00761-3

Grossman, G.M., Helpman, E. (1991), Trade, knowledge spill overs, and growth, “European Economic Review”, 35 (2–3), pp. 517–526. https://doi.org/10.1016/0014-2921(91)90153 A
Google Scholar DOI: https://doi.org/10.1016/0014-2921(91)90153-A

Hakeem, M., Oluwatoyin, O. (2012), Financial development and human capital in South Africa: a time-series approach, “Research in Applied Economics”, 4 (3), pp. 18–38. https://doi.org/10.5296/rae.v4i3.1498
Google Scholar DOI: https://doi.org/10.5296/rae.v4i3.1498

Hanh, P.T.H. (2010), Financial development, financial openness and trade openness: New evidence, FIW working paper Number 60.
Google Scholar

Haq, M., Luqman, M. (2014), The contribution of foreign trade to economic growth through human capital accumulation: Evidence from nine Asian countries, “Cogent Economics and Finance”, 2 (1), 947000. https://doi.org/10.1080/23322039.2014.947000
Google Scholar DOI: https://doi.org/10.1080/23322039.2014.947000

Hassan, A.K., Islam, M.R. (2005), Temporal causality and dynamics of financial development, trade openness, and economic growth in Vector Auto Regression (VAR) for Bangladesh, 1974–2003: Implication for poverty reduction, “Journal of Nepalese Business Studies”, 2 (1), pp. 1–12. https://doi.org/10.3126/jnbs.v2i1.50
Google Scholar DOI: https://doi.org/10.3126/jnbs.v2i1.50

Hur, J., Raj, M., Riyanto, Y.E. (2006), Finance and trade: A cross-country empirical analysis on the impact of financial development and asset tangibility on foreign trade, “World Development”, 34 (10), pp. 1728–1741. https://doi.org/10.1016/j.worlddev.2006.02.003
Google Scholar DOI: https://doi.org/10.1016/j.worlddev.2006.02.003

Im, K.S., Pesaran, M.H., Shin, Y. (2003), Testing unit roots in heterogeneous panels, “Journal of Econometrics”, 115 (1), pp. 53–74. https://doi.org/10.1016/S0304-4076(03)00092-7
Google Scholar DOI: https://doi.org/10.1016/S0304-4076(03)00092-7

International Monetary Fund (2015), World Economic Outlook: Adjusting to Lower Commodity Prices, Washington (October).
Google Scholar

Jafari, Y., Ismail, M.A., Kouhestani, M.S. (2011), Determinants of trade flows and D8 countries: Evidence from the Gravity Model, “Journal of Economic Cooperation and Development”, 32 (3), pp. 21–38.
Google Scholar

Kargbo, A.A., Ding, Y., Kargbo, M. (2016), Financial development, human capital and economic growth: New evidence from Sierra Leone, “Journal of Finance and Bank Management”, 4 (1), pp. 49–67.
Google Scholar

Kendall, J. (2007), The importance of local finance and human capital in regional growth: The case of India, University of California Santa Cruz, Job Market Paper.
Google Scholar

Kiendrebeogo, Y. (2013), How do banking crises affect bilateral exports?, “Empirical Economics”, 150, pp. 1–29. https://doi.org/10.5089/9781475576276.001
Google Scholar DOI: https://doi.org/10.5089/9781475576276.001

Kumarasamy, D., Singh, P. (2018), Access to finance, financial development and firm ability to export: experience from Asia-Pacific countries, “Asian Economic Journal”, 32 (1), pp. 15–38. https://doi.org/10.1111/asej.12140
Google Scholar DOI: https://doi.org/10.1111/asej.12140

Leibovici, F. (2018), Financial development and foreign trade, Federal Reserve Bank of St. Louis, Working Paper 2018–015A. https://doi.org/10.20955/es.2018.13
Google Scholar DOI: https://doi.org/10.20955/es.2018.13

Levin, A., Lin, C.F., Chu, C.S.J. (2002), Unit root tests in panel data: Asymptotic and finite-sample properties, “Journal of Econometrics”, 108 (1), pp. 1–24. https://doi.org/10.1016/S0304-4076(01)00098-7
Google Scholar DOI: https://doi.org/10.1016/S0304-4076(01)00098-7

Lucas, R.E. (1988), On the Mechanics of Economic Development, “Journal of Monetary Economics”, 22 (1), pp. 3–42. https://doi.org/10.1016/0304-3932(88)90168-7
Google Scholar DOI: https://doi.org/10.1016/0304-3932(88)90168-7

Manova, K. (2013), Credit constraints, heterogeneous firms, and foreign trade, “Review of Economic Studies”, 80 (1), pp. 711–744. https://doi.org/10.1093/restud/rds036
Google Scholar DOI: https://doi.org/10.1093/restud/rds036

Mete, M., Bozgeyik, Y. (2017), An Empirical Investigation on Determinants of Foreign Trade in Turkey, “Expert Journal of Economics”, 5 (1), pp. 27–37.
Google Scholar

Minetti, R., Zhu, S. (2011), Credit constraints and firm export: microeconomic evidence from Italy, “Journal of International Economics”, 83 (1), pp. 109–125. https://doi.org/10.1016/j.jinteco.2010.12.004
Google Scholar DOI: https://doi.org/10.1016/j.jinteco.2010.12.004

Muûls, M. (2012), Exporters, importers and credit constraints. Centre for Economic Performance, National Bank of Belgium Working Paper Number 139, October 2012.
Google Scholar

Owen, A.L. (1999), Foreign trade and the accumulation of human capital, “Southern Economic Journal”, 66 (1), pp. 61–81. https://doi.org/10.2307/1060835
Google Scholar DOI: https://doi.org/10.1002/j.2325-8012.1999.tb00224.x

Paravisini, D., Rappoport, V., Schnabel, P., Wolfenson, D. (2011), Dissecting the effect of credit supply on trade: Evidence from matched credit-export data, NBER Working Paper 16975. https://doi.org/10.3386/w16975
Google Scholar DOI: https://doi.org/10.3386/w16975

Patrick, H.T. (1966), Financial development and economic growth in underdeveloped countries, “Economic Development and Cultural Change”, 14 (2), pp. 174–189. https://doi.org/10.1086/450153
Google Scholar DOI: https://doi.org/10.1086/450153

Rajan, R., Zingales, L. (1998), Financial dependence and growth, “American Economic Review”, 88 (3), pp. 559–586.
Google Scholar

Rao, D.T., Mahale, K. (2011), Growth in Exports of Services of India Exogenous Human Capital, Labor Market Infirmities and Complementing Foreign Capital, “Transnational Corporations Review”, 3 (3), pp. 106–123. https://doi.org/10.1080/19186444.2011.11658301
Google Scholar DOI: https://doi.org/10.1080/19186444.2011.11658301

Samuelson, P.A. (2001), A Ricardo-Sraffa paradigm comparing gains from trade in inputs and finished goods, “Journal of Economic Literature”, 39 (4), pp. 1204–1214. https://doi.org/10.1257/jel.39.4.1204
Google Scholar DOI: https://doi.org/10.1257/jel.39.4.1204

Schumpeter, J.A. (1934), The Theory of Economic Development: An Inquiry FTo Profits, Capital, Credit, interest, and the Business Cycle, Transaction Books, New Brunswick.
Google Scholar

Sehrawat, M., Giri, A.K. (2014), The relationship between financial development indicators and human development in India, “International Journal of Social Economics”, 41 (12), pp. 1194–1208. https://doi.org/10.1108/IJSE-11-2013-0268
Google Scholar DOI: https://doi.org/10.1108/IJSE-11-2013-0268

Shahbaz, M., Rahman, M.M. (2014), Exports, financial development and economic growth in Pakistan, “International Journal of Development Issues”, 13 (2), pp. 155–170. https://doi.org/10.1108/IJDI-09-2013-0065
Google Scholar DOI: https://doi.org/10.1108/IJDI-09-2013-0065

Spulber, D.F. (2008), Innovation and foreign trade in technology, “Journal of Economic Theory”, 138 (1), pp. 1–20. https://doi.org/10.1016/j.jet.2007.06.002
Google Scholar DOI: https://doi.org/10.1016/j.jet.2007.06.002

Stokey, N.L. (1991), Human capital, product quality, and growth, “The Quarterly Journal of Economics”, 106 (1), pp. 587–616. https://doi.org/10.2307/2937948
Google Scholar DOI: https://doi.org/10.2307/2937948

Tsaurai, K. (2017), Is foreign portfolio equity investment inspired growth hypothesis relevant in emerging markets?, “Euro Economica”, 36 (2), pp. 78–90.
Google Scholar

Tsaurai, K. (2018), Is the interaction between human capital and financial development one of the determinants of FDI in emerging markets?, “International Journal of Education Economics and Development”, 9 (1), pp. 24–37. https://doi.org/10.1504/IJEED.2018.10012161
Google Scholar DOI: https://doi.org/10.1504/IJEED.2018.091069

Ukenna, S., Ijeoma, N., Anionwu, C., Olise, M. (2010), Effect of Investment in Human Capital Development on Organisational Performance: Empirical Examination of the Perception of Small Business Owners in Nigeria, “European Journal of Economics, Finance and Administrative Sciences”, 1 (26), pp. 93–107.
Google Scholar

Uzagalieva, A., Cukrowski, J. (2006), Labor Market Flexibility, International Competitiveness and Patterns of Trade, “International Economics”, 59 (2), pp. 225–246.
Google Scholar

Vaubourg, A.G. (2016), Finance and foreign trade: A review of the literature, “Revue d’économie politique”, 126 (1), pp. 57–87. https://doi.org/10.3917/redp.261.0057
Google Scholar DOI: https://doi.org/10.3917/redp.261.0057

Waqas, M., Shaheen, S., Awan, M.S., Aslam, M.A. (2011), Financial Development, Foreign trade and Economic Growth: Empirical Evidence from Pakistan, MPRA Paper No. 32876. https://doi.org/10.2139/ssrn.1950013
Google Scholar DOI: https://doi.org/10.2139/ssrn.1950013

Waugh, M.E. (2008), Human capital, product quality, and bilateral trade, Federal Reserve Bank of Minneapolis, Minnesota.
Google Scholar

Yakubu, A.S., Aboagye, A.Q., Mensah, L., Bokpin, G.A. (2018), Effect of financial development on foreign trade in Africa: Does measure of finance matter?, “The Journal of Foreign Trade and Economic Development”, 27 (8), pp. 917–936. https://doi.org/10.1080/09638199.2018.1474246
Google Scholar DOI: https://doi.org/10.1080/09638199.2018.1474246

Zaman, K., Izhar, Z., Mushtag Khan, M., Ahmad, M. (2012), The relationship between financial indicators and human development in Pakistan, “Economic Modeling”, 29 (5), pp. 1515–1523. https://doi.org/10.1016/j.econmod.2012.05.013
Google Scholar DOI: https://doi.org/10.1016/j.econmod.2012.05.013