Financial Dependence and International Trade

By Thorsten Beck. 2000

474 citations recorded by the source corpus.

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. It is shown 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. Copyright 2003 Blackwell Publishing Ltd..

Subfields: Economics and Econometrics, Finance, Information Systems

View Paper: https://www.semanticscholar.org/paper/56a75795e6a37399a0404007d7ebc472b0e02e3d

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Citations in the corpus

The Econometrics of Finance and Growth (2008, methodology): “Beck, Demirguc-Kunt and Maksimovic (2005) find a negative and significant coefficient on β1 and a positive and significant coefficient on β3, suggesting that firms reporting higher financing obstacles experience slower sales growth, but that this relationship is less strong in countries with better ”
Does External Trade Promote Financial Development (2005, unknown): “Two papers by Beck (2002, 2003) have examined this issue in detail.”
Comparative advantage, demand for external finance, and financial development (2006, background): “Indeed, this idea has been formalized theoretically by Kletzer and Bardhan (1987), Baldwin (1989), and Ju and Wei (2005), and has found empirical support in a number of studies (e.g., Beck, 2002, 2003; Becker and Greenberg, 2005; Svaleryd and Vlachos, 2005; Manova, 2005).”
The Effects of Financial Development on Foreign Direct Investment (2014, methodology): “See also Beck (2002, 2003) for empirical evidence that financially developed countries tend to export relatively more in financially vulnerable sectors than other countries.”
Firms in international trade (2016, methodology): “Beck (2003) uses data for 56 countries and 36 industries and finds evidence that financially more-developed countries export relatively more in financially dependent industries.”
When is Quality of Financial System a Source of Comparative Advantage (2011, unknown): “compatibility constraint ( 7 ) must be binding, which gives”
Dissecting the Effect of Credit Supply on Trade: Evidence from Matched Credit-Export Data (2011, background): “8For studies based on cross-industry comparisons see, among others, Beck (2003), Bolton et al. (2010), Chor and Manova (2010), Levchenko et al. (2010).”
New frontiers in international strategy (2004, background): “In addition, this question can help international business link to other fields of study that are tackling complementary issues, such as the cross-country corporate governance literature (e.g., Rajan and Zingales, 1998; Beck, 2001).”
Credit constraints, equity market liberalizations and international trade (2008, background): “All rights reserved. intensive in fixed upfront costs (Beck, 2003; Becker and Greenberg, 2005; Svaleryd and Vlachos, 2005; Hur et al., 2006).”
Liquidity Needs and Vulnerability to Financial Underdevelopment (2003, background): “Additional regressions provide some interesting results on the effect of the financial structure (banks versus markets) on volatility, which add to the existing literature on financial structure and growth (Levine and Zervos, 1998; Beck et al., 2001a). These results show that the development of bank”
Institutional Quality and International Trade (2004, unknown): “To prove the claims made about this expression, we observe that the South’s autarky equilibrium is found by solving equations (2) through (10) using φS, KS, and LS. From Proposition 1 we know that the trade equilibrium allocation is given by the solution to the same equilibrium equations, (2) throug”