However, more broadly, the literature does not seem to suggest that income elasticities are significantly lower for EMEs (for example, Lui and others, 2013).
Also, while trade financing constraints—another potential explanation—played some role during the severe trade slowdown during the Global Financial Crisis, trade financing does not appear to have become more difficult since 2011 and likely has not been a significant factor in the slowdown in recent years. 8 See Lewis and Monarch (2016) for more details.