Time & Location

Friday 25 Aug 2023, 12:00 pm – 1:00 pm
e61 Institute, Level 3, 17-21 Bellevue Street, Surry Hills NSW 2010, Australia | Online

About the Event

Dr Krisztina Orbán will be presenting her paper, “Firms’ Trade and Banking Relationships” as part of e61 Institute’s Lounge Sessions. The presentation will run for 45 minutes followed by a 15 minute Q&A. Register below now to confirm your attendance online or in-person.

Firms’ Trade and Banking Relationships
Authors: Dr Krisztina Orbán, Monash University
Abstract: Countries, and therefore firms, trade less with each other compared to what standard models would imply. Trade frictions are an important explanatory factor. In this paper I ask the question whether foreign banks, in addition to their traditional lending roles can also act as a vehicle to induce trade between a local firm and the country of ownership of the bank. I use an instrumental variable to induce changes in bank ownership, thereby generating exogenous variation in the ownership country of the bank a given firm has a relationship with. I find that firms experience an increase in their export probability to the ownership country of their foreign bank, following the exogenous start of a banking relationship with the ownership country of the bank.

About the Presenter

Dr Krisztina Orbán is an Assistant Professor in the Department of Economics at Monash University. Previously, she was a Postdoctoral Researcher at the National Bureau of Economic Research in Cambridge, Massachusetts and obtained her PhD in Economics from the University of Chicago. Her research fields are Industrial Organization (Productivity), Growth & Development, and Corporate Finance.