S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Knut Wicksell Centre for Financial Studies, Lund University Knut Wicksell Working Paper Series, Knut Wicksell Centre for Financial Studies, Lund University

No 2013/11:
Finance, Comparative Advantage, and Resource Allocation

Melise Jaud (), Madina Kukenova () and Martin Strieborny ()

Abstract: We 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. Our 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. Keywords: resource misallocation, finance, comparative advantage, ex- port survival

Keywords: Resource misallocation; finance; comparative advantage; ex-port survival; (follow links to similar papers)

JEL-Codes: F11; G21; G30; O16; (follow links to similar papers)

30 pages, June 19, 2013

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

kwc-wp-2013-11.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Frederik Lundtofte () or Niclas Andrén ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:luwick:2013_011 This page was generated on 2014-12-14 19:25:05