Article ID Journal Published Year Pages File Type
989901 World Development 2006 14 Pages PDF
Abstract

SummaryThis paper investigates the interplay between financial development, asset tangibility, and international trade. Using industry-level data on firms’ dependence on external finance and firms’ asset tangibility for 27 industries in 42 countries, we find that economies with higher levels of financial development have higher export shares and trade balance in industries with more intangible assets. Using the same dataset, we also show that the interplay between property-rights protection and asset tangibility influences the pattern of trade. Higher levels of property-rights protection lead to higher export shares and trade balance in industries with more intangible assets.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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