Publication:
Trade and Financial Sector Reforms : Interactions and Spillovers

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dc.contributor.authorTaylor, Ashley
dc.date.accessioned2012-03-19T18:39:26Z
dc.date.available2012-03-19T18:39:26Z
dc.date.issued2010-04-01
dc.description.abstractThe allocation of production across firms is a potentially important explanation of the productivity gap between rich and poor economies. Reforms to trade policy and the domestic financial sector are often both key elements of policy packages aimed at reducing productive distortions. However, the impact of each reform in reallocating production within an economy is usually analyzed independently. This paper asks how do such general equilibrium effects of trade and domestic financial sector reforms interact in terms of their effects on productivity, wages and utility. Motivated by recent firm-level studies, I add two-way linkages between firms production and exporting decisions and their financial constraints to a general equilibrium heterogeneous firm trade model. The interaction effects between reforms appear qualitatively important. Trade and domestic financial sector reforms have complementary effects on the average productivity and size of domestic producers. However, if much reallocative work has already been done through a well-functioning financial sector, the marginal benefits of trade liberalisation for wages and household utility are reduced. Improvements in the ability to use exports as pledgeable collateral enhance both the wage and productivity effects of trade reforms. The model also highlights the potential for financial sector reforms in one economy to be exported via the trade channel, affecting decisions to produce or export in the foreign economy and putting downward pressure on foreign real wages.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100423141314
dc.identifier.doi10.1596/1813-9450-5279
dc.identifier.urihttps://hdl.handle.net/10986/3766
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5279
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO FINANCE
dc.subjectADVANCED ECONOMIES
dc.subjectAGENCY PROBLEMS
dc.subjectAGGREGATE DEMAND
dc.subjectAGRICULTURE
dc.subjectALLOCATIVE EFFICIENCY
dc.subjectAVERAGE PRODUCTIVITY
dc.subjectBALANCE OF PAYMENTS
dc.subjectBANKING LAWS
dc.subjectBANKING SECTOR
dc.subjectBANKS
dc.subjectBENEFICIAL EFFECTS
dc.subjectBILATERAL TRADE
dc.subjectBORROWING
dc.subjectBORROWING CAPACITY
dc.subjectBORROWING COSTS
dc.subjectBORROWINGS
dc.subjectCAPITAL ACCOUNT
dc.subjectCAPITAL ACCOUNT LIBERALIZATION
dc.subjectCENTRALLY PLANNED ECONOMY
dc.subjectCOLLATERAL
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCONSUMPTION EXPENDITURE
dc.subjectCONSUMPTION LEVELS
dc.subjectCONTRACT ENFORCEMENT
dc.subjectCORRUPTION
dc.subjectCOST OF ENTRY
dc.subjectCOST OF FINANCE
dc.subjectCOST STRUCTURE
dc.subjectCREDIT ALLOCATION
dc.subjectCREDIT CONSTRAINT
dc.subjectCREDIT CONSTRAINTS
dc.subjectCREDIT MARKET
dc.subjectCREDIT MARKETS
dc.subjectCREDITOR
dc.subjectCREDITORS
dc.subjectCRISES
dc.subjectCURRENT ACCOUNT
dc.subjectDEBT
dc.subjectDEBT CONTRACTS
dc.subjectDEBT REPAYMENTS
dc.subjectDERIVATIVE
dc.subjectDEVELOPING ECONOMIES
dc.subjectDIRECTED CREDIT
dc.subjectDISCOUNT RATE
dc.subjectDOMESTIC BORROWING
dc.subjectDOMESTIC CREDIT
dc.subjectDOMESTIC ECONOMY
dc.subjectDOMESTIC INTEREST RATE
dc.subjectDOMESTIC MARKET
dc.subjectDOMESTIC MARKETS
dc.subjectDOMESTIC PRICE
dc.subjectDOMESTIC PRICES
dc.subjectDUMPING
dc.subjectELASTICITY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING MARKETS
dc.subjectENDOGENOUS VARIABLES
dc.subjectENDOWMENTS
dc.subjectENTREPRENEUR
dc.subjectENTREPRENEURS
dc.subjectEQUATIONS
dc.subjectEQUILIBRIUM
dc.subjectEQUILIBRIUM VALUE
dc.subjectEQUILIBRIUM VALUES
dc.subjectEQUILIBRIUM WAGES
dc.subjectEQUITY INVESTMENT
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATES
dc.subjectEXPECTED UTILITY
dc.subjectEXPENDITURE
dc.subjectEXPORT MARKET
dc.subjectEXPORT MARKETS
dc.subjectEXPORTER
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectEXPROPRIATION
dc.subjectEXTERNAL FUNDS
dc.subjectFINANCIAL CONSTRAINTS
dc.subjectFINANCIAL DEPTH
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL HEALTH
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL LIBERALIZATION
dc.subjectFINANCIAL REFORM
dc.subjectFINANCIAL REFORMS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SECTOR DEVELOPMENT
dc.subjectFINANCIAL SECTOR LIBERALIZATION
dc.subjectFINANCIAL SECTOR POLICY
dc.subjectFINANCIAL SECTOR REFORMS
dc.subjectFINANCIAL SECTORS
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFIXED COST
dc.subjectFIXED COSTS
dc.subjectFLOW OF FUNDS
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN FIRMS
dc.subjectFOREIGN LENDERS
dc.subjectFORM OF COLLATERAL
dc.subjectGDP
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGLOBAL FINANCIAL SYSTEM
dc.subjectGROSS DEBT
dc.subjectHIDDEN INFORMATION
dc.subjectHOLDING
dc.subjectHOME COUNTRY
dc.subjectHOME CREDIT
dc.subjectHOST ECONOMIES
dc.subjectHOUSEHOLD SAVING
dc.subjectHOUSEHOLD SAVINGS
dc.subjectHOUSEHOLDS
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCOME EFFECT
dc.subjectINDUSTRIAL ECONOMIES
dc.subjectINEFFICIENCY
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE CEILINGS
dc.subjectINTEREST RATES
dc.subjectINTERNAL FUNDS
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL FINANCE
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTMENT CHOICE
dc.subjectINVESTMENT CHOICES
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT OPTIONS
dc.subjectINVESTMENT PATTERNS
dc.subjectINVESTMENT PROJECTS
dc.subjectINVESTOR PROTECTION
dc.subjectLABOR COSTS
dc.subjectLABOR DEMAND
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectLABOR PRODUCTIVITY
dc.subjectLABOR SUPPLY
dc.subjectLACK OF INFORMATION
dc.subjectLEGAL SYSTEMS
dc.subjectLENDERS
dc.subjectLIBERALIZATION OF INTEREST
dc.subjectLIQUIDITY
dc.subjectMACROECONOMIC EFFECTS
dc.subjectMARGINAL BENEFITS
dc.subjectMARGINAL COST
dc.subjectMARGINAL PRODUCTS
dc.subjectMARKET EQUILIBRIUM
dc.subjectMONOPOLISTIC COMPETITION
dc.subjectMORAL HAZARD
dc.subjectMOTIVATION
dc.subjectMULTIPLIERS
dc.subjectNET EXPORTS
dc.subjectNET WORTH
dc.subjectOPTIMAL INVESTMENT
dc.subjectOUTPUTS
dc.subjectPERFECT COMPETITION
dc.subjectPOLICY RESPONSE
dc.subjectPOLITICAL ECONOMY
dc.subjectPOSITIVE EFFECTS
dc.subjectPREFERENTIAL ACCESS
dc.subjectPRICE CHANGES
dc.subjectPRIVATE BANKS
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPRODUCTIVITY
dc.subjectPROFIT MAXIMIZATION
dc.subjectPRUDENTIAL SUPERVISION
dc.subjectRATE OF RETURN
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL INTEREST
dc.subjectREAL INTEREST RATE
dc.subjectREAL WAGES
dc.subjectREPAYMENT
dc.subjectRESOURCE ALLOCATION
dc.subjectRETURNS
dc.subjectSAVINGS
dc.subjectSECURITIES
dc.subjectSECURITIES MARKETS
dc.subjectSELF-FINANCE
dc.subjectSOLVENCY
dc.subjectTANGIBLE ASSETS
dc.subjectTARIFF BARRIERS
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTRADE BARRIERS
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE POLICY
dc.subjectTRADE REFORMS
dc.subjectTRADING
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTRANSFER OF OWNERSHIP
dc.subjectTRANSITION ECONOMIES
dc.subjectUNION
dc.subjectVALUE ADDED
dc.subjectVALUE OF OUTPUT
dc.subjectVARIABLE COST
dc.subjectWAGES
dc.subjectWEALTH
dc.subjectWORLD ECONOMY
dc.subjectWTO
dc.titleTrade and Financial Sector Reforms : Interactions and Spilloversen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleTrade And Financial Sector Reforms : Interactions And Spillovers
okr.date.doiregistration2025-04-10T11:51:41.661333Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100423141314
okr.globalpracticeSocial Protection and Labor
okr.guid258091468330926975
okr.identifier.doi10.1596/1813-9450-5279
okr.identifier.externaldocumentum000158349_20100423141314
okr.identifier.internaldocumentum12142140
okr.identifier.reportWPS5279
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/04/23/000158349_20100423141314/Rendered/PDF/WPS5279.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.topicSocial Protections and Labor::Labor Policies
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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