We join the new trade theory with a model of choice between bank and bond financing to show the differential effects of …. Increasing bank efficiency and reducing bond transaction costs have opposite effects on the extensive margin of trade, aggregate … exports, and the real exchange rate. Increasing access to export markets allows firms to overcome high fixed costs of bond …

We join the new trade theory with a model of choice between bank and bond financing to show the differential effects of … small open economy. Increasing bank efficiency and reducing bond transaction costs both increase welfare but have opposite … openness increases firms' relative demand for bond versus bank financing. We identify a financial switching channel for gains …

We join the new trade theory with a model of choice between bank and bond financing to show the differential effects of … small open economy. Increasing bank efficiency and reducing bond transaction costs both increase welfare but have opposite … openness increases firms' relative demand for bond versus bank financing. We identify a financial switching channel for gains …

We join the new trade theory with a model of choice between bank and bond financing to show the differential effects of … small open economy. Increasing bank efficiency and reducing bond transaction costs both increase welfare but have opposite … openness increases firms' relative demand for bond versus bank financing. We identify a financial switching channel for gains …