TY - BOOK ID - 133433488 TI - Finance, Comparative Advantage, and Resource Allocation AU - Jaud, Melise AU - Strieborny, Martin AU - Kukenova, Madina PY - 2012 PB - Washington, D.C. : World Bank, DB - UniCat KW - Equality. UR - https://www.unicat.be/uniCat?func=search&query=sysid:133433488 AB - The authors show that exported products exit the US market sooner if they violate the Heckscher-Ohlin notion of comparative advantage. Crucially, this pattern is stronger when exporting country has a well-developed banking system, measured by a high ratio of bank credit over the GDP. Banks thus push firms away from exports that are facing an uphill battle on a competitive foreign market due to a suboptimal use of the domestic factor endowment. The results imply a disciplining role for bank credit in terminating inefficient trade flows. This constitutes a new channel through which finance improves resource allocation in the real economy. ER -