| Item Type |
Journal paper
|
| Abstract |
Innovative production is driven by creative destruction. High turnover requires frequent reallocation of capital. Banks play a major role in capital reallocation by withdrawing funds from nonviable firms and redirecting credit to scale up the most productive firms. Structural parameters of the banking system thus affect a country’s comparative advantage in innovative sectors. Using a Heckscher–Ohlin model with banks, this paper shows how insolvency laws, investor protection, and bank capital regulation shape reallocation, specialization, and trade patterns. |
| Authors |
Keuschnigg, Christian & Kogler, Michael |
| Journal or Publication Title |
Review of International Economics |
| Language |
English |
| Subjects |
economics |
| HSG Classification |
contribution to scientific community |
| HSG Profile Area |
SEPS - Economic Policy |
| Refereed |
Yes |
| Date |
2021 |
| Publisher |
Wiley |
| Number |
30(1) |
| Page Range |
282-305 |
| Publisher DOI |
https://doi.org/10.1111/roie.12564 |
| Official URL |
https://onlinelibrary.wiley.com/doi/10.1111/roie.1... |
| Depositing User |
Dr. Mirela Keuschnigg
|
| Date Deposited |
05 Jul 2018 09:32 |
| Last Modified |
03 Aug 2022 09:18 |
| URI: |
https://www.alexandria.unisg.ch/publications/254608 |
Trade and Credit Reallocation: How Banks Help Shape Comparative Advantage
