Financial Dependence and International Trade

Does 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 que...

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Main Author:	Beck, Thorsten
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING ADVERSE SELECTION ALTERNATIVE INSTRUMENTS BALANCE SHEETS BEARING LIABILITIES CAPITAL EXPENDITURES CAPITAL MARKET CAPITAL MARKETS CASH FLOWS CENTRAL BANK COAL COMMERCIAL BANKS COMPARATIVE ADVANTAGE CONSUMERS CONTRACT ENFORCEMENT CREDIT MARKET CREDIT RATIONING CREDITOR RIGHTS CURRENCY DEMAND SHOCKS DEVELOPMENT ECONOMICS DISCOUNTED VALUE DOMESTIC INDUSTRIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMISTS ELASTICITIES ELASTICITY ELASTICITY OF SUPPLY ENTREPRENEURSHIP EQUILIBRIUM EQUITY MARKET EXCHANGE RATE EXCHANGE RATE POLICY EXPENDITURES EXPORT INDUSTRIES EXPORT SHARE EXPORT SHARES EXPORTS EXTERNAL FINANCE EXTERNAL FINANCING FACTOR ENDOWMENTS FINANCIAL DEPENDENCE FINANCIAL DEVELOPMENT FINANCIAL DEVELOPMENT ACROSS COUNTRIES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS GDP GDP PER CAPITA HUMAN CAPITAL IMPORT TARIFFS IMPORTS INCOME STATEMENTS INDUSTRY TRADE INSURANCE INTERNATIONAL TRADE LABOR PRODUCTIVITY LESS DEVELOPED COUNTRIES LIQUID LIABILITIES LIQUIDITY MARGINAL COSTS MARKET CAPITALIZATION MARKET DEVELOPMENT MARKET IMPERFECTIONS MARKET POWER MONETARY ECONOMICS MONOPOLIES MORAL HAZARD NET EXPORTERS PER CAPITA INCOME POLICY MAKERS PRIVATE CREDIT PRIVATE FIRMS PRIVATE SECTOR PRODUCERS REAL GDP REAL SECTOR REGRESSION ANALYSIS RETURN ON CAPITAL SAVINGS SPECIALIZATION STOCK MARKET STOCK MARKETS SUPPLY CURVE TARIFF BARRIERS TRADE BALANCE TRADE DATA TRADE DEFICIT TRADE FLOWS TRADE MODELS TRADE PATTERNS TRADE POLICY TRADE REFORMS TRADE STRUCTURE
Online Access:	http://documents.worldbank.org/curated/en/2001/05/2873608/financial-dependence-international-trade http://hdl.handle.net/10986/19634

id	okr-10986-19634
recordtype	oai_dc
spelling	okr-10986-196342021-04-23T14:03:43Z Financial Dependence and International Trade Beck, Thorsten ACCOUNTING ADVERSE SELECTION ALTERNATIVE INSTRUMENTS BALANCE SHEETS BEARING LIABILITIES CAPITAL EXPENDITURES CAPITAL MARKET CAPITAL MARKETS CASH FLOWS CENTRAL BANK COAL COMMERCIAL BANKS COMPARATIVE ADVANTAGE CONSUMERS CONTRACT ENFORCEMENT CREDIT MARKET CREDIT RATIONING CREDITOR RIGHTS CURRENCY DEMAND SHOCKS DEVELOPMENT ECONOMICS DISCOUNTED VALUE DOMESTIC INDUSTRIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMISTS ELASTICITIES ELASTICITY ELASTICITY OF SUPPLY ENTREPRENEURSHIP EQUILIBRIUM EQUITY MARKET EXCHANGE RATE EXCHANGE RATE POLICY EXPENDITURES EXPORT INDUSTRIES EXPORT SHARE EXPORT SHARES EXPORTS EXTERNAL FINANCE EXTERNAL FINANCING FACTOR ENDOWMENTS FINANCIAL DEPENDENCE FINANCIAL DEVELOPMENT FINANCIAL DEVELOPMENT ACROSS COUNTRIES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS GDP GDP PER CAPITA HUMAN CAPITAL IMPORT TARIFFS IMPORTS INCOME STATEMENTS INDUSTRY TRADE INSURANCE INTERNATIONAL TRADE LABOR PRODUCTIVITY LESS DEVELOPED COUNTRIES LIQUID LIABILITIES LIQUIDITY MARGINAL COSTS MARKET CAPITALIZATION MARKET DEVELOPMENT MARKET IMPERFECTIONS MARKET POWER MONETARY ECONOMICS MONOPOLIES MORAL HAZARD NET EXPORTERS PER CAPITA INCOME POLICY MAKERS PRIVATE CREDIT PRIVATE FIRMS PRIVATE SECTOR PRODUCERS REAL GDP REAL SECTOR REGRESSION ANALYSIS RETURN ON CAPITAL SAVINGS SPECIALIZATION STOCK MARKET STOCK MARKETS SUPPLY CURVE TARIFF BARRIERS TRADE BALANCE TRADE DATA TRADE DEFICIT TRADE FLOWS TRADE MODELS TRADE PATTERNS TRADE POLICY TRADE REFORMS TRADE STRUCTURE Does 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. 2014-08-25T17:25:43Z 2014-08-25T17:25:43Z 2001-05 http://documents.worldbank.org/curated/en/2001/05/2873608/financial-dependence-international-trade http://hdl.handle.net/10986/19634 English en_US Policy Research Working Paper;No. 2609 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTING ADVERSE SELECTION ALTERNATIVE INSTRUMENTS BALANCE SHEETS BEARING LIABILITIES CAPITAL EXPENDITURES CAPITAL MARKET CAPITAL MARKETS CASH FLOWS CENTRAL BANK COAL COMMERCIAL BANKS COMPARATIVE ADVANTAGE CONSUMERS CONTRACT ENFORCEMENT CREDIT MARKET CREDIT RATIONING CREDITOR RIGHTS CURRENCY DEMAND SHOCKS DEVELOPMENT ECONOMICS DISCOUNTED VALUE DOMESTIC INDUSTRIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMISTS ELASTICITIES ELASTICITY ELASTICITY OF SUPPLY ENTREPRENEURSHIP EQUILIBRIUM EQUITY MARKET EXCHANGE RATE EXCHANGE RATE POLICY EXPENDITURES EXPORT INDUSTRIES EXPORT SHARE EXPORT SHARES EXPORTS EXTERNAL FINANCE EXTERNAL FINANCING FACTOR ENDOWMENTS FINANCIAL DEPENDENCE FINANCIAL DEVELOPMENT FINANCIAL DEVELOPMENT ACROSS COUNTRIES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS GDP GDP PER CAPITA HUMAN CAPITAL IMPORT TARIFFS IMPORTS INCOME STATEMENTS INDUSTRY TRADE INSURANCE INTERNATIONAL TRADE LABOR PRODUCTIVITY LESS DEVELOPED COUNTRIES LIQUID LIABILITIES LIQUIDITY MARGINAL COSTS MARKET CAPITALIZATION MARKET DEVELOPMENT MARKET IMPERFECTIONS MARKET POWER MONETARY ECONOMICS MONOPOLIES MORAL HAZARD NET EXPORTERS PER CAPITA INCOME POLICY MAKERS PRIVATE CREDIT PRIVATE FIRMS PRIVATE SECTOR PRODUCERS REAL GDP REAL SECTOR REGRESSION ANALYSIS RETURN ON CAPITAL SAVINGS SPECIALIZATION STOCK MARKET STOCK MARKETS SUPPLY CURVE TARIFF BARRIERS TRADE BALANCE TRADE DATA TRADE DEFICIT TRADE FLOWS TRADE MODELS TRADE PATTERNS TRADE POLICY TRADE REFORMS TRADE STRUCTURE
spellingShingle	ACCOUNTING ADVERSE SELECTION ALTERNATIVE INSTRUMENTS BALANCE SHEETS BEARING LIABILITIES CAPITAL EXPENDITURES CAPITAL MARKET CAPITAL MARKETS CASH FLOWS CENTRAL BANK COAL COMMERCIAL BANKS COMPARATIVE ADVANTAGE CONSUMERS CONTRACT ENFORCEMENT CREDIT MARKET CREDIT RATIONING CREDITOR RIGHTS CURRENCY DEMAND SHOCKS DEVELOPMENT ECONOMICS DISCOUNTED VALUE DOMESTIC INDUSTRIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMISTS ELASTICITIES ELASTICITY ELASTICITY OF SUPPLY ENTREPRENEURSHIP EQUILIBRIUM EQUITY MARKET EXCHANGE RATE EXCHANGE RATE POLICY EXPENDITURES EXPORT INDUSTRIES EXPORT SHARE EXPORT SHARES EXPORTS EXTERNAL FINANCE EXTERNAL FINANCING FACTOR ENDOWMENTS FINANCIAL DEPENDENCE FINANCIAL DEVELOPMENT FINANCIAL DEVELOPMENT ACROSS COUNTRIES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS GDP GDP PER CAPITA HUMAN CAPITAL IMPORT TARIFFS IMPORTS INCOME STATEMENTS INDUSTRY TRADE INSURANCE INTERNATIONAL TRADE LABOR PRODUCTIVITY LESS DEVELOPED COUNTRIES LIQUID LIABILITIES LIQUIDITY MARGINAL COSTS MARKET CAPITALIZATION MARKET DEVELOPMENT MARKET IMPERFECTIONS MARKET POWER MONETARY ECONOMICS MONOPOLIES MORAL HAZARD NET EXPORTERS PER CAPITA INCOME POLICY MAKERS PRIVATE CREDIT PRIVATE FIRMS PRIVATE SECTOR PRODUCERS REAL GDP REAL SECTOR REGRESSION ANALYSIS RETURN ON CAPITAL SAVINGS SPECIALIZATION STOCK MARKET STOCK MARKETS SUPPLY CURVE TARIFF BARRIERS TRADE BALANCE TRADE DATA TRADE DEFICIT TRADE FLOWS TRADE MODELS TRADE PATTERNS TRADE POLICY TRADE REFORMS TRADE STRUCTURE Beck, Thorsten Financial Dependence and International Trade
relation	Policy Research Working Paper;No. 2609
description	Does 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.
format	Publications & Research :: Policy Research Working Paper
author	Beck, Thorsten
author_facet	Beck, Thorsten
author_sort	Beck, Thorsten
title	Financial Dependence and International Trade
title_short	Financial Dependence and International Trade
title_full	Financial Dependence and International Trade
title_fullStr	Financial Dependence and International Trade
title_full_unstemmed	Financial Dependence and International Trade
title_sort	financial dependence and international trade
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2001/05/2873608/financial-dependence-international-trade http://hdl.handle.net/10986/19634
_version_	1764440170685267968

Financial Dependence and International Trade

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