Identifying financial constraints under trade liberalization: Lessons from Kenya, Uganda and Ghana

Abstract

"This paper explores the influence that financial sector deficits have on a country's export performance under trade liberalization. It argues that under such circumstances, financial constraints are particularly damaging because trade liberalization increases the demand for finance both in the export sector and for investment. The paper aims to identify the most relevant factors in determining how financial constraints are likely to hinder the export performance of a particular country. Based on these factors, the paper outlines a research scheme that once applied to a particular country, provides a detailed understanding of the financial needs that should be addressed during trade liberalization." [author's abstract]