Sustainable finance, as a distinct category of finance, entails the introduction of environmental, social and governance (ESG) considerations into financial decision-making. Previous work at the international level such as the UN Principles for Responsible Investment and the Global Compact...

Research into how remittances affect financial development of the remittance recipient countries has generated a great deal of interest. However, the outcome of these studies is far from being conclusive as there are increasing ambiguities and heterogeneity in terms of the remittances-financial...

We develop a heterogeneous-firms model with trade in goods, labor mobility and credit constraints due to moral hazard. Mitigating financial frictions reduces the incentive of high-skilled workers to migrate to one region such that an unequal distribution of industrial activity becomes less...

This paper analyzes the impact of financial development on export concentration. I incorporate credit constraints into a trade model with heterogeneous exporters and endogenous quality choice. The model predicts that financial development increases innovation activity and export shares of larger...

This paper develops a theory of international trade in which financial development and factor endowments jointly determine comparative advantage. We apply the financial contract model of Holmstrom and Tirole (1998) to the Heckscher-Ohlin-Samuelson (HOS) model in which firms' dependence on...

This paper discusses key findings of the financial sector stability assessment for Romania. The assessment reveals that in recent years, Romania’s financial sector regulatory authorities have made significant progress in adopting international best practices, including through...

Purpose - This paper introduces previously missing financial components(efficiency, activity and size) in the assessment of the finance-investment nexus. Design/methodology/approach - VAR models in the perspectives of VECM and short-run Granger causality are employed. Usage of optimally...

Purpose - The issue of which financial initial conditions are necessary to materialize the benefits of financial globalization remains open to debate in the literature. In this paper, we try to put some empirical structure on the concept of financial threshold conditions in order to give...