Banking Crisis and Exports 1980-2006
Argentina, Bolivia, Colombia, Costa Rica, Finland, Indonesia, Italy, Jordan, Japan, Sri Lanka, Mexico, Malaysia, Nigeria, Norway, Nepal, Panama, ..., 1980 - 2006
Leonardo Iacovone (World Bank) and Veronika Zavacka (Graduate Institute for International and Development Studies)
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April 26, 2021
Last modified
April 26, 2021
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Identification
Survey ID Number
WLD_2006_BCE_v01_M
Title
Banking Crisis and Exports 1980-2006
Country/Economy
| Name | Country code |
|---|---|
| Argentina | ARG |
| Bolivia | BOL |
| Colombia | COL |
| Costa Rica | CRI |
| Finland | FIN |
| Indonesia | IDN |
| Italy | ITA |
| Jordan | JOR |
| Japan | JPN |
| Sri Lanka | LKA |
| Mexico | MEX |
| Malaysia | MYS |
| Nigeria | NGA |
| Norway | NOR |
| Nepal | NPL |
| Panama | PAN |
| Philippines | PHL |
| Papua New Guinea | PNG |
| Portugal | PRT |
| Sweden | SWE |
| Tunisia | TUN |
| United States | USA |
Abstract
For the first time since 1982, in 2009, global trade flows will not grow. According to the latest IMF projections global trade in goods and services is expected to drop by 11% during 2009 and to stagnate in year 2010. The recent collapse in exports following the unfolding of the financial crisis has generated new pressing questions about the relationship between banking crises and exports growth. Are the supply shocks due to the collapse in the banking system responsible for the falls in exports? Or is what we observe completely attributable to the demand side where we have also observed unprecedented drops particularly in developed countries? In Iacovone and Zavacka (2009) we explore these questions using data, below, from 23 past banking crises episodes involving both developed and developing countries during 1980-2000.
Kind of Data
Aggregate data [agg]
Scope
Notes
The dataset includes indicators related to:
- Export
- Export growth rate
- Banking crisis
- External finance dependence
- Dependence on trade credit
- Tangibility
- Financial institution assets
- Stock market capitalization
- Private credit
- Trade
- GDP loss during crisis
- Real GDP per capita
- Blanket guarantee
- Liquidity support
- Forbearance
- Recapitalizations
- Debt relief
- Recession
- Real gdp growth
- Inventories/sales
- Cash conversion cycle
- External finance dependence
- Capital/labor
- R&D intensity
- Product homogeneity
- Export
- Export growth rate
- Banking crisis
- External finance dependence
- Dependence on trade credit
- Tangibility
- Financial institution assets
- Stock market capitalization
- Private credit
- Trade
- GDP loss during crisis
- Real GDP per capita
- Blanket guarantee
- Liquidity support
- Forbearance
- Recapitalizations
- Debt relief
- Recession
- Real gdp growth
- Inventories/sales
- Cash conversion cycle
- External finance dependence
- Capital/labor
- R&D intensity
- Product homogeneity
Producers and sponsors
Primary investigators
| Name |
|---|
| Leonardo Iacovone (World Bank) and Veronika Zavacka (Graduate Institute for International and Development Studies) |
Data Collection
Dates of Data Collection
| Start | End |
|---|---|
| 1980 | 2006 |
Time periods
| Start date | End date |
|---|---|
| 1980 | 2006 |
Data Collection Mode
Other [oth]
Data Collection Notes
Exports data, from UN Comtrade, are disaggregated at 4 digits ISIC Rev 2 and cover the period 1980 to 2006. There are 81 industries at this level of disaggregation, however, not all countries have exported in all industries and years and therefore the resulting panel is unbalanced with the number of observations slightly above 30000.
The information on banking crises is obtained from Dell'Ariccia, Detragiache, and Rajan (2008) who identify 48 episodes of systemic financial crises in both developed and developing countries. Because we are only interested in the effect of pure banking crises we exclude all \twin crises" when a currency crisis occurred jointly with the banking crisis. The rationale for this exclusion is that we want to isolate the credit crunch channel from balance sheet effects. During twin crises, when large devaluations occur, firms with high exposure to foreign debt will be hit particularly hard. If these firms are also the firms highly dependent on external finance, the effect of the crisis on exporters that we observe might be a consequence of their own balance sheet problems rather than a consequence of the credit crunch due to the banking crisis. Finally, out of the remaining 32 crisis episodes we only have disaggregated trade data for 23 crises in 21 countries. We use Dell'Ariccia, Detragiache, and Rajan's (2008) database to identify the start of the crisis but in the estimations the financial crisis dummy is actually a \crisis window". This is equal to 1 if country if faces a financial crisis in year t as well as in the two following years .The reason of using a crisis window is because we are not only interested in the immediate short run effects of the crisis but also its medium-term effects. Furthermore, given the lumpiness of certain investments it is possible that the impact of the credit crunch due to the crisis may emerge with a lag as firms do not have to finance investment continuously.
The information on banking crises is obtained from Dell'Ariccia, Detragiache, and Rajan (2008) who identify 48 episodes of systemic financial crises in both developed and developing countries. Because we are only interested in the effect of pure banking crises we exclude all \twin crises" when a currency crisis occurred jointly with the banking crisis. The rationale for this exclusion is that we want to isolate the credit crunch channel from balance sheet effects. During twin crises, when large devaluations occur, firms with high exposure to foreign debt will be hit particularly hard. If these firms are also the firms highly dependent on external finance, the effect of the crisis on exporters that we observe might be a consequence of their own balance sheet problems rather than a consequence of the credit crunch due to the banking crisis. Finally, out of the remaining 32 crisis episodes we only have disaggregated trade data for 23 crises in 21 countries. We use Dell'Ariccia, Detragiache, and Rajan's (2008) database to identify the start of the crisis but in the estimations the financial crisis dummy is actually a \crisis window". This is equal to 1 if country if faces a financial crisis in year t as well as in the two following years .The reason of using a crisis window is because we are not only interested in the immediate short run effects of the crisis but also its medium-term effects. Furthermore, given the lumpiness of certain investments it is possible that the impact of the credit crunch due to the crisis may emerge with a lag as firms do not have to finance investment continuously.
Access policy
Contacts
| Name | Affiliation | URL | |
|---|---|---|---|
| Development Research Group | World Bank | research@worldbank.org | http://go.worldbank.org/B9W4QTDHR0 |
Citation requirements
Use of the dataset must be acknowledged using a citation which would include:
- the Identification of the Primary Investigator
- the title of the survey (including acronym and year of implementation)
- the survey reference number
- the source and date of download
Example:
Leonardo Iacovone and Veronika Zavacka. Banking Crisis and Exports (BCE) 1980-2006. Ref. WLD_2006_BCE_v01_M. Dataset downloaded from http://microdata.worldbank.org on [date].
- the Identification of the Primary Investigator
- the title of the survey (including acronym and year of implementation)
- the survey reference number
- the source and date of download
Example:
Leonardo Iacovone and Veronika Zavacka. Banking Crisis and Exports (BCE) 1980-2006. Ref. WLD_2006_BCE_v01_M. Dataset downloaded from http://microdata.worldbank.org on [date].
Disclaimer and copyrights
Disclaimer
The user of the data acknowledges that the original collector of the data, the authorized distributor of the data, and the relevant funding agency bear no responsibility for use of the data or for interpretations or inferences based upon such uses.
Metadata production
DDI Document ID
DDI_WLD_2006_BCE_v02_M
Date of Metadata Production
2010-09-08
DDI Document version
DDI Document - Version 02 - (04/21/21)
This version is identical to DDI_WLD_2006_BCE_v01_M but country field has been updated to capture all the countries covered by survey.
version 01 (September 2010)
This version is identical to DDI_WLD_2006_BCE_v01_M but country field has been updated to capture all the countries covered by survey.
version 01 (September 2010)