Beck, Thorsten2014-08-252014-08-252001-05https://hdl.handle.net/10986/19634Does financial development translate into a comparative advantage in industries that use more external finance? The author uses industry-level data on firms' dependence on external finance for 36 industries and 56 countries to examine this question. The author shows that countries with better-developed financial systems have higher export shares and trade balances in industries that use more external finance. These results are robust to the use of alternative measures of external dependence and financial development and are not due to reverse causality or simultaneity bias.en-USCC BY 3.0 IGOACCOUNTINGADVERSE SELECTIONALTERNATIVE INSTRUMENTSBALANCE SHEETSBEARING LIABILITIESCAPITAL EXPENDITURESCAPITAL MARKETCAPITAL MARKETSCASH FLOWSCENTRAL BANKCOALCOMMERCIAL BANKSCOMPARATIVE ADVANTAGECONSUMERSCONTRACT ENFORCEMENTCREDIT MARKETCREDIT RATIONINGCREDITOR RIGHTSCURRENCYDEMAND SHOCKSDEVELOPMENT ECONOMICSDISCOUNTED VALUEDOMESTIC INDUSTRIESECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMISTSELASTICITIESELASTICITYELASTICITY OF SUPPLYENTREPRENEURSHIPEQUILIBRIUMEQUITY MARKETEXCHANGE RATEEXCHANGE RATE POLICYEXPENDITURESEXPORT INDUSTRIESEXPORT SHAREEXPORT SHARESEXPORTSEXTERNAL FINANCEEXTERNAL FINANCINGFACTOR ENDOWMENTSFINANCIAL DEPENDENCEFINANCIAL DEVELOPMENTFINANCIAL DEVELOPMENT ACROSS COUNTRIESFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL INTERMEDIARY DEVELOPMENTFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTFINANCIAL STRUCTUREFINANCIAL SYSTEMFINANCIAL SYSTEMSGDPGDP PER CAPITAHUMAN CAPITALIMPORT TARIFFSIMPORTSINCOME STATEMENTSINDUSTRY TRADEINSURANCEINTERNATIONAL TRADELABOR PRODUCTIVITYLESS DEVELOPED COUNTRIESLIQUID LIABILITIESLIQUIDITYMARGINAL COSTSMARKET CAPITALIZATIONMARKET DEVELOPMENTMARKET IMPERFECTIONSMARKET POWERMONETARY ECONOMICSMONOPOLIESMORAL HAZARDNET EXPORTERSPER CAPITA INCOMEPOLICY MAKERSPRIVATE CREDITPRIVATE FIRMSPRIVATE SECTORPRODUCERSREAL GDPREAL SECTORREGRESSION ANALYSISRETURN ON CAPITALSAVINGSSPECIALIZATIONSTOCK MARKETSTOCK MARKETSSUPPLY CURVETARIFF BARRIERSTRADE BALANCETRADE DATATRADE DEFICITTRADE FLOWSTRADE MODELSTRADE PATTERNSTRADE POLICYTRADE REFORMSTRADE STRUCTURE10.1596/1813-9450-2609