1 option
Finance, Comparative Advantage, and Resource Allocation / Melise Jaud, Madina Kukenova, Martin Strieborny.
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Author/Creator:
- Jaud, Melise, author.
- Strieborny, Martin, author.
- Kukenova, Madina, author.
- Series:
- Policy research working papers.
- Policy research working papers
- Language:
- English
- Subjects (All):
- Equality.
- Physical Description:
- 1 online resource (37 pages).
- Place of Publication:
- Washington, D.C. : World Bank, 2012.
- Summary:
- The authors show that exported products exit the US market sooner if they violate the Heckscher-Ohlin notion of comparative advantage. Crucially, this pattern is stronger when exporting country has a well-developed banking system, measured by a high ratio of bank credit over the GDP. Banks thus push firms away from exports that are facing an uphill battle on a competitive foreign market due to a suboptimal use of the domestic factor endowment. The results imply a disciplining role for bank credit in terminating inefficient trade flows. This constitutes a new channel through which finance improves resource allocation in the real economy.
- Notes:
- Description based on publisher supplied metadata and other sources.
- Publisher Number:
- 10.1596/1813-9450-6111
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.