Banking and Monetary Crises: Impacts on Exports of MENA Countries

Authors

  • Mohamed Ben Abdallah
  • Zouheir Bouchaddakh

Keywords:

Trade, Gravity Models, Monetary Crisis, Banking Crisis, MENA Region

Abstract

In this paper we try to contribute to the limited literature treating the impact of financial crises on exports. In addition to exports of goods we emphasize on exports of services. We quantify both the level and duration of exports collapse due to monetary and banking crises. Estimating a gravitational model of unilateral trade for the MENA countries over the period 1970-2011, we find that after currency and banking crises in the partner countries, exports of MENA countries decreased significantly. However, exports of services of MENA countries are not as adversely
affected by financial crises.

Published

2013-07-01