Financial Globalization, Portfolio Diversification, and the Pattern of International Trade /

The paper provides a general-equilibrium model where incomplete international financial markets lead to insufficient industrial specialization and low international trade. As international portfolio diversification is limited and productivity is uncertain, investors wish to maintain a diversified in...

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Detalhes bibliográficos
Autor principal: Koren, Miklos
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2003.
Colecção:IMF Working Papers; Working Paper ; No. 2003/233
Acesso em linha:Full text available on IMF
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100 1 |a Koren, Miklos. 
245 1 0 |a Financial Globalization, Portfolio Diversification, and the Pattern of International Trade /  |c Miklos Koren. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2003. 
300 |a 1 online resource (47 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a The paper provides a general-equilibrium model where incomplete international financial markets lead to insufficient industrial specialization and low international trade. As international portfolio diversification is limited and productivity is uncertain, investors wish to maintain a diversified industrial structure rather than specializing according to their comparative advantage. Financial globalization then induces more specialization and more trade. The present framework yields explicit closed-form solutions for the volume and the structure of trade. Empirical results support the implications of the theory. Trade in financially open countries is (i) higher, (ii) more dependent on productivity differences, and (iii) less sensitive to industry risks. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2003/233 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2003/233/001.2003.issue-233-en.xml  |z IMF e-Library