RESEARCH AND ANALYSIS: WORKING PAPERS
Improving the availability of trade finance in developing countries: an assessment of remaining gaps
While conditions in trade finance markets returned to normality in the main routes of trade, the structural difficulties of poor countries in accessing trade finance have not disappeared – and might have been worsened during and after the global financial crisis.
In fact, there is a consistent flow of information indicating that trade finance markets have remained characterized by a greater selectivity in risk-taking and flight to "quality" customers. In that environment, the lower end of the market has been struggling to obtain affordable finance, with the smaller companies in the smaller, poorer countries most affected. In an area where statistics are difficult to find, this paper looks at recent available information and provides background on the persistent and significant market gaps for trade finance in developing countries, notably in Africa and developing Asia. It discusses various initiatives in which the WTO and partner institutions are involved to alleviate in part this situation.
No: ERSD-2015-06
Authors: Marc Auboin, WTO
Manuscript date: June 2015
Key Words:
trade financing, cooperation with international financial institutions, coherence, G-20, developing countries
JEL classification numbers:
F13, F34, F36, O19, G21, G32
back to topDisclaimer
This is a working paper, and hence it represents research in progress. The opinions expressed in this paper are those of its authors. They are not intended to represent the positions or opinions of the WTO or its members and are without prejudice to members’ rights and obligations under the WTO. Any errors are attributable to the authors.
Download paper in pdf format (22 pages, 306KB; opens in a new window)