Destination Country Financial Development and Margins of International Trade

17 Pages Posted: 12 Mar 2019

See all articles by Weisi Xie

Weisi Xie

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management

Xiaohan Ma

Texas Tech University

Date Written: February 14, 2019

Abstract

We demonstrate theoretically and empirically that financial development of the destination country is as important as that of the origin country in shaping bilateral trade patterns, on both the extensive margin and the intensive margin of trade.

Keywords: Financial development, Financial vulnerability, Destination country, Bilateral trade

JEL Classification: F10, F14, F36, G20

Suggested Citation

Xie, Weisi and Ma, Xiaohan, Destination Country Financial Development and Margins of International Trade (February 14, 2019). Economics Letters, Volume 177, April 2019, Pages 99-104, Available at SSRN: https://ssrn.com/abstract=3334776

Weisi Xie (Contact Author)

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management ( email )

No. 1954 Huashan Rd.
Shanghai Jiao Tong University
Shanghai, Shanghai 200030
China

Xiaohan Ma

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

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