Trade and Credit Reallocation: How Banks Help Shape Comparative Advantage

Item Type Monograph (Working Paper)

Trade and innovation cause structural change. Productive factors must flow from declining to growing industries. Banks play a major role in cutting credit to non-viable firms in downsizing sectors and in providing new credit to finance investment in expanding, innovative sectors. Structural parameters of a country’s banking system thus influence comparative advantage and trade. The analysis points to the importance of insolvency laws, minimum capital standards, and cost of bank equity to determine credit reallocation, sectoral expansion and trade patterns.

Authors Keuschnigg, Christian & Kogler, Michael
Language English
Subjects economics
HSG Classification contribution to scientific community
HSG Profile Area SEPS - Economic Policy
Depositing User Dr. Mirela Keuschnigg
Date Deposited 05 Jul 2018 09:32
Last Modified 06 Jul 2018 00:30


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Keuschnigg, Christian & Kogler, Michael: Trade and Credit Reallocation: How Banks Help Shape Comparative Advantage. ,

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