Title: Financial Development and Exports: Evidence from Chinese Micro-Data

Speaker: Liping Lu, VU University Amsterdam

Time: March 21st, 2017 13:30–15:00

Venue: Conference Room 106B, Zhonghui Building (College of Economics, JNU)

About the speaker:

Liping Lu is an Assistant Professor at the Department of Finance, VU University Amsterdam. He is also a candidate fellow at Tinbergen Institute. Liping Lu gained his PhD in Finance from Tilburg University in 2013 and, prior to his employment at the VU University Amsterdam, he held visiting positions in the European Bank for Reconstruction and Development, and the Bank of Finland. His research interests include empirical banking, development economics, international trade, Chinese economy, law and finance, and he has published in such papers as Journal of Financial Intermediation, Journal of Banking and Finance and Economics Letters. 

Abstract:

Local financial development can enhance exports through alleviating the credit constraints of exporting firms. We use the changing exchange rate as a tool to identify the enhancing effect of local financial development on the export. We find that local financial development can enhance the intensive and extensive margins of export when the RMB depreciates versus other currencies. This enhancing effect is more pronounced for firms with higher external financial dependence, higher intangible assets, smaller firms, non-state owned firms, firms in east China, and firms with lower proportion of ordinary trade. Our findings substantiate the enhancing effect of local financial development on the export.