Financial integration and the comparative advantage of exports

Claire Y. C. Liang and Pei-Chien Lin

The Journal of International Trade & Economic Development, 2022, vol. 31, issue 8, 1127-1148

Abstract: We use a cross-country cross-industry unbalanced panel dataset to examine whether countries with a higher degree of international financial integration exhibit a greater comparative advantage in the exports of industries that rely more on external financing. Our results indicate that financial integration can be a source of comparative advantage, especially for industries relying more on external finance. However, the benefits of financial integration also depend on a country’s quality of economic and legal institutions. The pros and cons of international financial integration are still being debated in the literature. Our study adds empirical evidence to the beneficial effects of financial integration on real economic activity.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/09638199.2022.2073603 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:jitecd:v:31:y:2022:i:8:p:1127-1148

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RJTE20

DOI: 10.1080/09638199.2022.2073603

Access Statistics for this article

The Journal of International Trade & Economic Development is currently edited by Pasquale Sgro, David E.A. Giles and Charles van Marrewijk

More articles in The Journal of International Trade & Economic Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().