The authors show that exported products exit the US market sooner if they violate the Heckscher-Ohlin notion of comparative advantage. Crucially, this pattern is stronger when exporting country has a well-developed banking system, measured by a high ratio of bank credit over the GDP. Banks thus...

Foreign investors facilitate efficiency-enhancing structural change in the recipient countries. After countries liberalize their stock markets and allow foreign investors to acquire equity stakes in domestic firms, products that do not correspond to the liberalizing countries' comparative...

Banks and stock markets play distinct roles in helping exporters survive in foreign markets, conditional on the specific financial needs of exported products. Stock markets rather than banks help exporters who lack easily collateralizable tangible assets. Active rather than large stock markets...

Can financial institutions and markets enhance the discipline imposed by competitive product markets and thus improve resource allocation in the real economy? We address this question in the context of international trade, using disaggregated product-level data from 71 countries exporting to the...

We find that granting foreign investors access to domestic stock markets facilitate efficiency-enhancing product specialization in the recipient countries. After countries liberalize their stock markets and allow foreign investors to acquire equity stakes in domestic firms, products that do not...

We find that granting foreign investors access to domestic stock markets facilitate efficiency-enhancing product specialization in the recipient countries. After countries liberalize their stock markets and allow foreign investors to acquire equity stakes in domestic firms, products that do not...

We combine a novel measure of export-related financial needs at the product level with a unique database of firm-product export data (including names of the exporting firms) from five developing countries. Using the tools of survival analysis and taking into account firms' and products'...

We combine a novel measure of export-related financial needs at the product level with a unique database of firm-product export data (including names of the exporting firms) from five developing countries. Using the tools of survival analysis and taking into account firms' and products'...