Endowment Versus Finance : A Wooden Barrel Theory of International Trade /

This paper develops a theory of international trade in which financial development and factor endowments jointly determine comparative advantage. We apply the financial contract model of Holmstrom and Tirole (1998) to the Heckscher-Ohlin-Samuelson (HOS) model in which firms' dependence on exter...

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Bibliographic Details
Main Author: Ju, Jiandong
Other Authors: Wei, Shang-Jin
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2005.
Series:IMF Working Papers; Working Paper ; No. 2005/123
Online Access:Full text available on IMF