Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/191423
Authors: 
Keuschnigg, Christian
Kogler, Michael
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper 7398
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 in providing new credit to finance investment in expanding, innovative sectors. Structural parameters of a country’s banking system thus influence comparative advantage and trade, and can magnify the gains from trade liberalization. The analysis shows how insolvency laws, minimum capital standards, and cost of bank equity determine credit reallocation, sectoral expansion and trade patterns.
Subjects: 
capital reallocation
banking
trade
comparative advantage
JEL: 
F10
G21
G28
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.