This paper proposes a model of international trade with capital accumulation and financial intermediation. This is achieved by embedding the Melitz (2003) model into an incomplete-markets neoclassical framework with an endogenous credit market. The model preserves the analytical tractability of...

This paper investigates the firm-level linkage between international finance and trade. We present evidence that firms respond to higher export shares by borrowing larger shares of debts in foreign currency. Crucially, we address the endogeneity concerns by capitalizing on South Korea’s and...

Business ownership and self‐employment constitute a vital part of the economy. Entrepreneurs can provide employment for themselves and others. While many of the determinants of entrepreneurship have been intensively studied, the link between language ability and entrepreneurship has not. Using...

Quality of public institutions has been recognized as a crucial determinant of macroeconomic outcomes. We propose that a country's intrinsic level of openness (due to population size, geography, or exogenous trade opportunities) affects its incentives in investing in better institutions. We...

We conducted this research to explore the possible factors shaping son preference, with a view to understanding the persistently high male/female sex ratio. Using data from the Chinese General Social Survey (CGSS) and the Population Census of China, we find a significant impact of regional sex...

The Earned Income Tax Credit (EITC) is the federal government’s largest cash assistance program for working families. This research aims to understand the extent to which the EITC affects black and white households differently. The empirical analysis shows that after the EITC expansion, single...

This paper examines the impact of culture on industrial similarity during the trade liberalization process between 1998 and 2007. The identification strategy relies on the regional variation in exposure to trade and compares the industrial structures of pairs of adjacent counties that do or do...