The significance of natural resources in facilitating financial activity is crucial in achieving a nation's sustainable economic advancement. This research directed to investigate the consequences of economic growth, rents of natural resources, and capitalization on financial development within...

We study how financial frictions affect firm-level heterogeneity and trade. We build a model where productivity differences across monopolistically competitive firms are endogenous and depend on investment decisions at the entry stage. By increasing entry costs, financial frictions lower the...