Financial Development and International Trade : Is There a Link?

Beck, Thorsten

doi:10.1596/1813-9450-2608

Publication:
Financial Development and International Trade : Is There a Link?

dc.contributor.author	Beck, Thorsten
dc.date.accessioned	2014-08-26T14:33:38Z
dc.date.available	2014-08-26T14:33:38Z
dc.date.issued	2001-05
dc.description.abstract	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.	en
dc.identifier	http://documents.worldbank.org/curated/en/2001/05/1121295/financial-development-international-trade-link
dc.identifier.uri	http://hdl.handle.net/10986/19656
dc.language	English
dc.language.iso	en_US
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper;No. 2608
dc.rights	CC BY 3.0 IGO
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	ASYMMETRIC INFORMATION
dc.subject	AVERAGE COSTS
dc.subject	CAPITAL STOCK
dc.subject	CENTRAL BANK
dc.subject	CENTRAL BANKS
dc.subject	CLOSED ECONOMY
dc.subject	COMPARATIVE ADVANTAGE
dc.subject	COMPETITIVE MARKETS
dc.subject	CONSTANT RETURNS
dc.subject	CONSTANT RETURNS TO SCALE
dc.subject	CONSUMERS
dc.subject	CONSUMPTION FUNCTION
dc.subject	CONTRACT ENFORCEMENT
dc.subject	COUNTRY REGRESSIONS
dc.subject	COUNTRY-SPECIFIC EFFECTS
dc.subject	CREDIT RATIONING
dc.subject	CURRENCY
dc.subject	DEBT
dc.subject	DEMAND CURVE
dc.subject	DEMAND FUNCTIONS
dc.subject	DEPOSITS
dc.subject	DESCRIPTIVE STATISTICS
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DIFFERENTIAL PATHS
dc.subject	DISTRIBUTION FUNCTION
dc.subject	DYNAMIC PANEL
dc.subject	ECONOMETRIC MODEL
dc.subject	ECONOMETRICS
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC HISTORIANS
dc.subject	ECONOMIC REVIEW
dc.subject	ECONOMIC STAGNATION
dc.subject	ECONOMIC STUDIES
dc.subject	ECONOMIC THEORY
dc.subject	ECONOMIES OF SCALE
dc.subject	EMPIRICAL EVIDENCE
dc.subject	EMPIRICAL GROWTH LITERATURE
dc.subject	EMPIRICAL LITERATURE
dc.subject	EMPIRICAL TEST
dc.subject	EMPLOYMENT
dc.subject	ENDOGENOUS VARIABLE
dc.subject	EQUILIBRIUM
dc.subject	EXOGENOUS VARIABLE
dc.subject	EXPECTED RETURN
dc.subject	EXPECTED VALUE
dc.subject	EXPLANATORY VARIABLES
dc.subject	EXPORT SHARE
dc.subject	EXPORT SHARES
dc.subject	EXPORTS
dc.subject	EXTERNAL FINANCE
dc.subject	FACTOR ENDOWMENTS
dc.subject	FACTOR MARKETS
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL SECTOR
dc.subject	FINANCIAL SECTORS
dc.subject	FINANCIAL SERVICES
dc.subject	FINANCIAL SYSTEMS
dc.subject	FOOD PRODUCTION
dc.subject	FOREIGN PRODUCERS
dc.subject	GDP
dc.subject	GROWTH PERFORMANCE
dc.subject	GROWTH RATE
dc.subject	HIGH CORRELATION
dc.subject	IMPORTS
dc.subject	INCOME
dc.subject	INCOME LEVEL
dc.subject	INCREASING RETURNS
dc.subject	INCREASING RETURNS TO SCALE
dc.subject	INSURANCE
dc.subject	INTEREST RATE
dc.subject	INTERNATIONAL TRADE
dc.subject	LIQUIDITY
dc.subject	LIQUIDITY CONSTRAINTS
dc.subject	LONG-RUN EQUILIBRIUM
dc.subject	LONG-RUN IMPACT
dc.subject	MACROECONOMIC VARIABLES
dc.subject	MACROECONOMICS
dc.subject	MARGINAL COST
dc.subject	MARGINAL REVENUE
dc.subject	MONETARY ECONOMICS
dc.subject	MONOPOLISTIC COMPETITION
dc.subject	NATURAL RESOURCES
dc.subject	NEGATIVE EFFECT
dc.subject	NET EXPORTERS
dc.subject	0 HYPOTHESIS
dc.subject	OPENNESS
dc.subject	POLICY IMPLICATIONS
dc.subject	POLICY MAKERS
dc.subject	POLICY RESEARCH
dc.subject	POLITICAL ECONOMY
dc.subject	POSITIVE IMPACT
dc.subject	PRICE ELASTICITY
dc.subject	PRIVATE SECTOR
dc.subject	PRODUCERS
dc.subject	PRODUCT DIFFERENTIATION
dc.subject	PRODUCT MARKETS
dc.subject	PRODUCTION FUNCTION
dc.subject	PRODUCTION TECHNOLOGY
dc.subject	PRODUCTIVITY
dc.subject	PRODUCTIVITY GROWTH
dc.subject	PUBLIC POLICY
dc.subject	REAL GDP
dc.subject	REGRESSION RESULTS
dc.subject	RELATIVE DEMAND
dc.subject	RELATIVE SUPPLY
dc.subject	RETURN ON EQUITY
dc.subject	SAVINGS
dc.subject	SERIAL CORRELATION
dc.subject	SIGNIFICANT CORRELATION
dc.subject	SPECIALIZATION
dc.subject	TERMS OF TRADE
dc.subject	TOTAL OUTPUT
dc.subject	TRADE BALANCE
dc.subject	TRADE FLOWS
dc.subject	TRADE PATTERNS
dc.subject	TRADE REFORMS
dc.subject	UTILITY FUNCTION
dc.subject	UTILITY FUNCTIONS
dc.subject	WEALTH
dc.title	Financial Development and International Trade : Is There a Link?	en
dspace.entity.type	Publication
okr.date.disclosure	2001-05-31
okr.doctype	Publications & Research :: Policy Research Working Paper
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/2001/05/1121295/financial-development-international-trade-link
okr.globalpractice	Poverty
okr.globalpractice	Trade and Competitiveness
okr.identifier.doi	10.1596/1813-9450-2608
okr.identifier.externaldocumentum	000094946_01060604005428
okr.identifier.internaldocumentum	1121295
okr.identifier.report	WPS2608
okr.language.supported	en
okr.pdfurl	http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2001/06/15/000094946_01060604005428/Rendered/PDF/multi0page.pdf	en
okr.sector	Other Finance
okr.sector	Finance
okr.topic	Poverty Reduction :: Inequality
okr.topic	International Economics and Trade :: Trade Policy
okr.topic	International Economics and Trade :: Free Trade
okr.topic	Banks and Banking Reform
okr.topic	Payment Systems and Infrastructure
okr.topic	Economic Theory and Research
okr.topic	Environmental Economics and Policies
okr.unit	Finance, Development Research Group
okr.volume	1
relation.isAuthorOfPublication	4694cd5a-bd90-594b-abe2-f5b681139e6d
relation.isSeriesOfPublication	26e071dc-b0bf-409c-b982-df2970295c87