Trade And Financial Development

Author : Quy-Toan Do,Andrei A. Levchenko
Publisher : Unknown
Page : 128 pages
File Size : 54,5 Mb
Release : 2013
Category : Electronic
ISBN : OCLC:931678592

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Trade and Financial Development by Quy-Toan Do,Andrei A. Levchenko Pdf

The differences in financial development between advanced and developing countries are pronounced. It has been observed, both theoretically and empirically, that these differences in countries' financial systems are a source of comparative advantage and trade. This paper points out that to the extent a country's financial development is endogenous, it will in turn be influenced by trade. The paper builds a model in which a country's financial development is an equilibrium outcome of the economy's productive structure: in countries with large financially intensive sectors financial systems are more developed. When a wealthy and a poor country open to trade, the financially dependent sectors grow in the wealthy country, and so does the financial system. By contrast, as the financially intensive sectors shrink in the poor country, demand for external finance decreases and the domestic financial system deteriorates. This paper describes the authors' test model using data on financial development for a sample of 77 countries. The authors find that the main predictions of the model are borne out in the data: trade openness is associated with faster financial development in wealthier countries, and with slower financial development in poorer ones.

Author : Anonim
Publisher : World Bank Publications
Page : 30 pages
File Size : 40,9 Mb
Release : 2024-06-30
Category : Electronic
ISBN : 8210379456XXX

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trade and financial development by Anonim Pdf

Author : Quy-Toan Do
Publisher : Unknown
Page : 30 pages
File Size : 47,6 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1290705838

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Trade and Financial Development by Quy-Toan Do Pdf

The differences in financial systems between industrial and developing countries are pronounced. It has been observed, both theoretically and empirically, that the differences in countries' financial systems are a source of comparative advantage in trade.Do and Levchenko point out that to the extent a country's financial development is endogenous, it will in turn be influenced by trade. They build a model in which a country's financial development is an equilibrium outcome of the economy's productive structure: in countries with large financially intensive sectors, financial systems are more developed. When a wealthy and a poor country open to trade, the financially dependent sectors grow in the wealthy country, and so does the financial system. By contrast, as the financially intensive sectors shrink in the poor country, demand for external finance decreases and the domestic financial system deteriorates. The authors test their model using data on financial development for a sample of 77 countries. They find that the main predictions of the model are borne out in the data: trade openness is associated with faster financial development in wealthier countries, and with slower financial development in poorer ones.This paper - a product of the Development Research Group - is part of a larger effort in the group to investigate the relation between finance and trade.

Author : Matias Braun,Claudio E. Raddatz
Publisher : World Bank Publications
Page : 47 pages
File Size : 42,7 Mb
Release : 2005
Category : Finance
ISBN : 8210379456XXX

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Trade Liberalization and the Politics of Financial Development by Matias Braun,Claudio E. Raddatz Pdf

"A well developed financial system enhances competition in the industrial sector by allowing easier entry. The impact varies across industries, however. For some, small changes in financial development quickly induce entry and dissipate incumbents' rents, generating strong incentives to oppose improvement of the financial system. In other sectors incumbents may even benefit from increased availability of external funds. The relative strength of promoters and opponents determines the political equilibrium level of financial system development. This may be perturbed by the effect of trade liberalization in the strength of each group. Using a sample of 41 trade liberalizers Braun and Raddatz conduct an event study and show that the change in the strength of promoters vis--̉vis opponents is a very good predictor of subsequent financial development. The result is not driven by changes in demand for external funds, or by the success of the trade policy. The relationship is mediated by policy reforms, the kind that induces competition in the financial sector, in particular. Real effects follow not so much from capital deepening but mainly through improved allocation. The effect is stronger in countries with high levels of governance, suggesting that incumbents resort to this costly but more subtle way of restricting entry where it is difficult to obtain more blatant forms of anti-competitive measures from politicians. This paper--a product of the Investment and Growth Team, Development Research Group--is part of a larger effort in the group to understand the relation between finance and the macroeconomy"--World Bank web site.

Author : Thorsten Beck
Publisher : World Bank Publications
Page : 46 pages
File Size : 48,6 Mb
Release : 2001
Category : Comercio exterior
ISBN : 8210379456XXX

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Financial Development and International Trade by Thorsten Beck Pdf

Economies with better developed financial sectors have a comparative advantage in manufacturing industries. A two-sector model shows the sector with large scale economies profiting more than the other from a well-developed financial sector. In countries with higher levels of financial development, manufactured exports represent a higher share of GDP and of merchandise exports, and those countries have a higher trade balance in manufactured goods.

Author : Rajib Bhattacharyya
Publisher : Emerald Group Publishing
Page : 201 pages
File Size : 53,5 Mb
Release : 2019-11-26
Category : Business & Economics
ISBN : 9781838670061

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The Gains and Pains of Financial Integration and Trade Liberalization by Rajib Bhattacharyya Pdf

Geared towards policy makers, researchers, academics, and business and management professionals, The Gains and Pains of Financial Integration and Trade Liberalization helps readers develop new theories and models for analysing the future trends in finance and trade-related issues.

Author : Muhammad Shahbaz,Alaa Soliman,Subhan Ullah
Publisher : Springer Nature
Page : 245 pages
File Size : 51,9 Mb
Release : 2021-09-21
Category : Business & Economics
ISBN : 9783030790035

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Economic Growth and Financial Development by Muhammad Shahbaz,Alaa Soliman,Subhan Ullah Pdf

This book looks into the relationship between financial development, economic growth, and the possibility of a potential capital flight in the transmission process. It also examines the important role that financial institutions, financial markets, and country-level institutional factors play in economic growth and their impact on capital flight in emerging economies. By presenting new theoretical insights and empirical country studies as well as econometric approaches, the authors focus on the relationship between financial development and economic growth with capital flight in the era of financial crisis. Therefore, this book is a must-read for researchers, scholars, and policy-makers, interested in a better understanding of economic growth and financial development of emerging economies alike.

Author : Thorsten Beck
Publisher : Unknown
Page : 41 pages
File Size : 42,9 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1290704734

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Financial Development and International Trade by Thorsten Beck Pdf

Economies with better developed financial sectors have a comparative advantage in manufacturing industries. A two-sector model shows the sector with large scale economies profiting more than the other from a well-developed financial sector. In countries with higher levels of financial development, manufactured exports represent a higher share of GDP and of merchandise exports - and those countries have a higher trade balance in manufactured goods.Beck explores a possible link between financial development and trade in manufactures. His theoretical model focuses on the role of financial intermediaries in facilitating large-scale, high-return projects. Results show that economies with better developed financial sectors have a comparative advantage in manufacturing industries.He provides evidence for this hypothesis, first proposed by Kletzer and Bardhan (1987), using a 30-year panel of data for 65 countries. Controlling for country-specific effects and possible reverse causality, he shows that financial development exerts a large causal impact on the level of both exports and the trade balance of manufactured goods.This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to understand the link between financial development and economic growth. The author may be contacted at [email protected].

Author : Thorsten Beck,Ross Levine
Publisher : Edward Elgar Publishing
Page : 616 pages
File Size : 53,6 Mb
Release : 2018-07-27
Category : Business & Economics
ISBN : 9781785360510

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Handbook of Finance and Development by Thorsten Beck,Ross Levine Pdf

This Handbook provides a comprehensive overview of the relationship between financial and real sector development. The different chapters, written by leading contributors in the field, survey research on the importance of financial development for economic growth, the causes and consequences of financial fragility, the historic development of financial systems in several major economies and regions of the world, and the regulatory and supervisory underpinnings of financial sector development.

Author : Raymond Fisman,Inessa Love
Publisher : World Bank Publications
Page : 34 pages
File Size : 47,7 Mb
Release : 2001
Category : Credit
ISBN : 8210379456XXX

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Trade credit, financial intermediary development, and industry growth by Raymond Fisman,Inessa Love Pdf

Where do firms turn for financing in countries with poorly developed financial markets? One source is trade credit. And where formal financial intermediaries are deficient, industries that rely more on this source of financing grow faster.

Author : Nouriel Roubini,Xavier Sala-i-Martin
Publisher : Unknown
Page : 68 pages
File Size : 47,5 Mb
Release : 1991
Category : Commercial policy
ISBN : UCSD:31822015521198

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Financial Development, the Trade Regime, and Economic Growth by Nouriel Roubini,Xavier Sala-i-Martin Pdf

Author : Thorsten Beck
Publisher : World Bank Publications
Page : 33 pages
File Size : 45,8 Mb
Release : 2001
Category : Comparative advantage (International trade)
ISBN : 9784012916351

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Financial Dependence and International Trade by Thorsten Beck Pdf

Does financial development translate into a comparative advantage in industries that use more external finance? Yes, it does.

Author : Mr.Antonio David,Mr.Montfort Mlachila,Ashwin Moheeput
Publisher : International Monetary Fund
Page : 38 pages
File Size : 52,5 Mb
Release : 2014-06-09
Category : Business & Economics
ISBN : 9781498329057

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Does Openness Matter for Financial Development in Africa? by Mr.Antonio David,Mr.Montfort Mlachila,Ashwin Moheeput Pdf

This paper analyzes the links between financial and trade openness and financial development in Sub-Saharan African (SSA) countries. It is based on a panel dataset using methods that tackle slope heterogeneity, cross-sectional dependence and non-stationarity, important econometric problems that are often ignored in the literature. The results do not point to a general direct robust link between trade and capital account openness and financial development in SSA, once we control for other factors such as GDP per capita and inflation. But there is some indication that trade openness is more important for financial development in countries with better institutional quality. The findings might be due to a number of factors including distortions in domestic financial markets, relatively weak institutions and/or poor financial sector supervision. Thus, African policy makers should be cautious about expectations regarding immediate gains for financial development from greater international integration. Such gains are more likely to occur through indirect channels.

Author : Hazel J. Johnson,Patricia M. Langley
Publisher : World Scientific
Page : 140 pages
File Size : 52,6 Mb
Release : 2002
Category : Business & Economics
ISBN : 9810242492

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Trade Agreements and Financial Services by Hazel J. Johnson,Patricia M. Langley Pdf

Trade Agreements and Financial Services examines the cross-border agreements that have historically been focused on the trade of merchandise goods. Increasingly, emphasis is being placed on the provision of cross-border services. Notable among these are financial services. There is a clear link between economic development and the availability of financial products. Moreover, the financial services sector is, itself, a major industry that is fueling growth. The conditions under which financial services are offered in an international context are the subject of debate in the Western Hemisphere, Europe, Asia, and Latin America.

Author : Karl Farmer,Matthias Schelnast
Publisher : Springer Science & Business Media
Page : 447 pages
File Size : 52,9 Mb
Release : 2013-02-01
Category : Business & Economics
ISBN : 9783642336690

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Growth and International Trade by Karl Farmer,Matthias Schelnast Pdf

This textbook guides the reader towards various aspects of growth and international trade in a Diamond-type overlapping generations framework. Using the same model type throughout the book, timely topics such as growth with bubbles, debt reduction in rich countries and policies to mitigate climate change are explored . The first part starts from the “old” growth theory and bridges to the “new” growth theory (including R&D and human capital approaches). The second part presents an intertemporal equilibrium theory of inter and intra-sectoral trade and concludes by analyzing the debt mechanics inducing the huge imbalances among eurozone countries. The book is primarily addressed to graduate students wishing to proceed to the analytically more demanding journal literature.