Jaud, Melise
[VerfasserIn]
;
Kukenova, Madina
[Sonstige Person, Familie und Körperschaft];
Strieborny, Martin
[Sonstige Person, Familie und Körperschaft]
Finance, Comparative Advantage, and Resource Allocation
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 28, 2017 erstellt
Beschreibung:
Can financial institutions and markets enhance the discipline imposed by competitive product markets and thus improve resource allocation in the real economy? We address this question in the context of international trade, using disaggregated product-level data from 71 countries exporting to the USA. We show that exported products exit the US market sooner if they stand far away from the exporting country's comparative advantage. This pattern is stronger when the exporting country has a well-developed banking system, but it is unaffected by the depth of stock markets. These results are in accordance with theories stressing the disciplining role of debt and monitoring abilities of banks