Financial development and international trade : is there a link?

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Financial development and international trade : is there a link?, Volume 1

Author:	Beck, Thorsten;	Collection Title:	Policy, Research working paper ; no. WPS 2608
Country:	World;	Date Stored:	2001/06/15
Document Date:	2001/05/31	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Finance
Region:	The World Region	Report Number:	WPS2608
Sub Sectors:	Other Finance	SubTopics:	Environmental Economics & Policies; Economic Theory & Research; Payment Systems & Infrastructure; Trade Policy; Banks & Banking Reform; Free Trade; Inequality
Volume No:	1

Summary: The author explores a possible link between financial development and trade in manufactures. His theoretical model focuses on the role of financial intermediaries in facilitating large-scale, high-return projects. Results show that economies with better developed financial sectors have a comparative advantage in manufacturing industries. He provides evidence for this hypothesis, first proposed by Kletzer and Bardhan (1987), using a 30-year panel of data for 65 countries. Controlling for country-specific effects and possible reverse causality, he shows that financial development exerts a large causal impact on the level of both exports and the trade balance of manufactured goods.


Official Documents Official, scanned versions of documents (may include signatures, etc.)
File Type		Description	File Size (mb)

	PDF 46 pages	Official version*	3.22 (approx.)
	Text	Text version**


Light-Weight Documents Lighter (less MB) documents which may or may not be the final, official version
File Type		Description	File Size (mb)

	PDF 41 pages	WPS2608	0.36

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