Trade and Credit Reallocation: How Banks Help Shape Comparative Advantage

Christian Keuschnigg and Michael Kogler ()

VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy from Verein für Socialpolitik / German Economic Association

Abstract: 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 provide new credit to finance investment in expanding, innovative sectors. Structural parameters of a country’s banking system thus influence comparative advantage and trade patterns. 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.

Keywords: Capital reallocation; banking; trade; comparative advantage (search for similar items in EconPapers)
JEL-codes: F10 G21 G28 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-fdg and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/181571/1/VfS-2018-pid-13453.pdf (application/pdf)

Related works:
Journal Article: Trade and credit reallocation: How banks help shape comparative advantage (2022)
Working Paper: Trade and Credit Reallocation: How Banks Help Shape Comparative Advantage (2018)
Working Paper: Trade and Credit Reallocation: How Banks Help Shape Comparative Advantage (2018)
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:zbw:vfsc18:181571

Access Statistics for this paper

More papers in VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy from Verein für Socialpolitik / German Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().