Firm Heterogeneity under Financial Imperfection: Impacts of Trade and Capital Movement

Taiji Furusawa and Noriyuki Yanagawa
Additional contact information
Noriyuki Yanagawa: Faculty of Economics, University of Tokyo

No CIRJE-F-768, CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo

Abstract: The paper examines the impacts of trade and capital movement between North and South, which differ in the quality of financial institution, on the productivity distribution and other characteristics of a financially-dependent industry. We find that financial imperfection causes firm heterogeneity and that trade and capital movement are complements in the sense that trade in goods affects the productivity distribution only when accompanied by international capital movement (trade induces capital outflow from South when capital has been internationally mobile). We also find that an international difference in financial development induces reciprocal foreign direct investment.

Pages: 42pages
Date: 2010-10
New Economics Papers: this item is included in nep-bec
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.cirje.e.u-tokyo.ac.jp/research/dp/2010/2010cf768.pdf (application/pdf)

Related works:
Working Paper: Firm Heterogeneity under Financial Imperfection: Impacts of Trade and Capital Movement (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tky:fseres:2010cf768

Access Statistics for this paper

More papers in CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo Contact information at EDIRC.
Bibliographic data for series maintained by CIRJE administrative office ().