Financial Constraints, the Distribution of Wealth and International Trade

Financial Dependence and International Trade

Colin Xu, two anonymous referees and seminar participants at the University of Virginia, the World Bank, the University of California at Davis and the Annual Meeting of the Southern Economic Association are gratefully acknowledged. The usual disclaimer applies. The findings, interpretations and conclusions in this paper are entirely those of the author and do not necessarily represent the view ...

International and domestic trading and wealth distribution

Abstract. We introduce and discuss a kinetic model for wealth distribution in a simple market economy which is built of a number of countries or social groups. Our approach is based on the model with risky investments introduced by Cordier, Pareschi and one of the authors in [13] and borrows ideas from the kinetic theory of mixtures of rarefied gases. Wealth is exchanged by individuals inside t...

Market Imperfections, Wealth Inequality, and the Distribution of Trade Gains

We explore the role of the ownership structure of capital in an economy that suffers from barriers to entry and an imperfect financial system. In such an environment, an unequal distribution of capital provides an explanation for trade flows and trade gains even when countries do not differ in relative factor endowments or available technologies. Moreover, an uneven asset distribution is associ...

Foreign Trade and International Financial Flows: Implications for Economic Stability in the Selected ECOWAS Countries

T his study investigates the effects of extra-ECOWAS merchandise trade and investment flows on the transmission of business cycles in the selected ECOWAS between 1985 and 2014.  The study finds that total trade and foreign direct investment (FDI) significantly influence the transmission of business cycles with elasticities of 1.1 and 0.7, respectively in the long run. There are little vari...

A Difference-In-Differences (DID) Analysis Of Financial Integration And International Trade In ASEAN+5