Finance, Comparative Advantage, and Resource Allocation

• Tác giả: Madina Kukenova
• Ngôn ngữ: eng
• Ký hiệu phân loại: 338.23 Financial aspects
• Thông tin xuất bản: World Bank, Washington, DC, 2014
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 298964
• Chủ đề: 1. ALLOCATION OF CAPITAL; 2. BANK CREDIT; 3. BANK CREDITS; 4. BANK LENDING; 5. BANKING SECTOR

Tóm tắt

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.