Financial Constraints, the Distribution of Wealth and International Trade

18 Pages Posted: 31 May 2011

See all articles by Emmanuel Bentum Amissah

Emmanuel Bentum Amissah

Nottingham Trent University

Spiros Bougheas

University of Nottingham - School of Economics

Rod Falvey

Bond University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: May 2011

Abstract

We develop a simple theoretical model to examine the impact of the distribution of wealth on the patterns of trade when capital markets are imperfect. Our model predicts that the dispersion of wealth can be a determinant of comparative advantage for low income countries with poor financial institutions. We find support for these prediction using export and financial panel data from a large sample of countries.

Suggested Citation

Amissah, Emmanuel Bentum and Bougheas, Spiros and Falvey, Rod, Financial Constraints, the Distribution of Wealth and International Trade (May 2011). The World Economy, Vol. 34, Issue 5, pp. 707-724, 2011. Available at SSRN: https://ssrn.com/abstract=1854147 or http://dx.doi.org/10.1111/j.1467-9701.2011.01349.x

Emmanuel Bentum Amissah (Contact Author)

Nottingham Trent University ( email )

Burton Street
NG1 4BU Nottingham
United Kingdom
01158484143 (Phone)

Spiros Bougheas

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

Rod Falvey

Bond University - Department of Economics ( email )

Bond University - Department of Economics
Gold Coast, Queensland 4229
Australia

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