Financial Liberalization and the Relationship-Specificity of Exports
11 Pages Posted: 13 Jul 2013
We investigate the causal impact of equity market liberalizations in the period 1980‐1997 on sectoral export performance across 91 countries. The increased availability of external finance has boosted trade of industries that intensively use relationship‐specific inputs, and lowered exports of industries using standardized inputs.
Keywords: financial liberalization, credit constraints, relationship‐specificity, international trade
JEL Classification: F14, F36, G20
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