Financial markets, the pattern of industrial specialization and comparative advantage: Evidence from OECD countries
2005 (English)In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 49, no 1, 113-144 p.Article in journal (Refereed) Published
Due to underlying technological and organizational differences, industries differ in their need for external finance. Since services provided by the financial sector are largely immobile across countries, the pattern of industrial specialization should be influenced by the level of financial development. Among OECD countries we find a strong causal effect of the financial sector on industrial specialization. Further, the financial sector is a source of comparative advantage in a way consistent with the Hecksher–Ohlin–Vanek model. Results are also presented on which aspects of financial systems are important for specialization and comparative advantage.
Place, publisher, year, edition, pages
2005. Vol. 49, no 1, 113-144 p.
Financial intermediation; Financial systems; Specialization patterns; Comparative advantage
IdentifiersURN: urn:nbn:se:uu:diva-206086DOI: 10.1016/S0014-2921(03)00030-8OAI: oai:DiVA.org:uu-206086DiVA: diva2:643407