Trade and credit reallocation: How banks help shape comparative advantage
نویسندگان
چکیده
Innovative production is driven by creative destruction. High turnover requires frequent reallocation of capital. Banks play a major role in capital withdrawing funds from nonviable firms and redirecting credit to scale up the most productive firms. Structural parameters banking system thus affect country’s comparative advantage innovative sectors. Using Heckscher–Ohlin model with banks, this paper shows how insolvency laws, investor protection, bank regulation shape reallocation, specialization, trade patterns.
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ژورنال
عنوان ژورنال: Review of International Economics
سال: 2021
ISSN: ['0965-7576', '1467-9396']
DOI: https://doi.org/10.1111/roie.12564