Jaud, Melise; Kukenova, Madina; Strieborny, Martin - 2013 - First Draft: May, 2010, This Draft: December 30, 2013
ratio of bank credit over the GDP. Banks thus push firms away from exports that are facing an uphill battle on a competitive … foreign market due to a suboptimal use of the domestic factor endowment. Our results imply a disciplining role for bank credit … in terminating inefficient trade flows. This constitutes a new channel through which finance improves resource allocation …