Foreign financing could be an important factor in the survival of exporters and therefore the development of emerging economies, research published by the Bank for International Settlements finds.

Economists often warn of the downside of external financing, which can expose firms to the volatility of global capital markets. But authors Laura D’Amato, Máximo Sangiácomo and Martin Tobal highlight how foreign financing can help firms survive. They note a strong export sector is “crucial for