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Economies with better developed financial sectors have a comparative advantage in manufacturing industries. A two-sector model shows the sector with large scale economies profiting more than the other from a well-developed financial sector. In countries with higher levels of financial development, manufactured exports represent a higher share of GDP and of merchandise exports, and those countries have a higher trade balance in manufactured goods.
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Financial development and international trade: is there a link?
2001, World Bank, Finance, Development Research Group
Electronic resource
in English
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Book Details
Edition Notes
Also available in print.
Includes bibliographical references (p. 27-30).
Title from title screen as viewed on Sept. 09, 2002.
"May 2001"--Cover.
Mode of access: World Wide Web.
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