Financial Development and International Trade: Regional and Sectoral Analysis
AbstractFinancial development has been argued as a potential source of comparative advantage and its relationships with trade has been theoretically developed. This theory posits that countries that are well financially developed should experience greater volumes of international trade. We empirically investigate the effects of financial development on trade of both agricultural and manufactured products. The results show a positive impact of financial development on bilateral trade flows for the manufacturing sector, which enjoys a greater impact than the agricultural sector. The impacts differ across regions. In most cases, developing countries (Asia, Latin America, MENA and SSA) experience greater impacts of financial development on exports in both agriculture and manufacturing sectors than do advanced countries.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 102647.
Date of creation: 2011
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agricultural sector; comparative advantage; financial development; international trade; manufacturing sector; International Development; International Relations/Trade;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-07 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Henri L.F. de Groot & Gert-Jan Linders & Piet Rietveld & Uma Subramanian, 2003.
"The Institutional Determinants of Bilateral Trade Patterns,"
Tinbergen Institute Discussion Papers
03-044/3, Tinbergen Institute, revised 30 Oct 2003.
- Henri L. F. de Groot & Gert-Jan Linders & Piet Rietveld & Uma Subramanian, 2004. "The Institutional Determinants of Bilateral Trade Patterns," Kyklos, Wiley Blackwell, vol. 57(1), pages 103-123, 02.
- Henri L.F. De Groot & Gert-Jan Linders & Piet Rietveld & Uma Subramanian, 2003. "The Institutional Determinants of Bilateral Trade Patterns," ERSA conference papers ersa03p421, European Regional Science Association.
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