Financial globalization, portfolio diversification, and the pattern of international trade /

Financial globalization, portfolio diversification, and the pattern of international trade /

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Bibliographic Details
Author / Creator:	Koren, Miklós, 1976- author.
Imprint:	Washington, D.C. : International Monetary Fund, 2003.
Description:	1 online resource (46 pages)
Language:	English
Series:	IMF working paper, 2227-8885 ; WP/03/233 IMF working paper ; WP/03/233.
Subject:	International trade -- Econometric models. Industrial productivity -- Econometric models. Portfolio management -- Econometric models. Industrial productivity -- Econometric models. International trade -- Econometric models. Portfolio management -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12496237

Hidden Bibliographic Details
Other authors / contributors:	International Monetary Fund. Research Department.
ISBN:	1282586661 9781282586666 9781451920215 1451920210 9781451875614 1451875614
Notes:	Includes bibliographical references (pages 44-46). Restrictions unspecified Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
Summary:	The paper provides a general-equilibrium model where incomplete international financial markets lead to insufficient industrial specialization and low international trade. As international portfolio diversification is limited and productivity is uncertain, investors wish to maintain a diversified industrial structure rather than specializing according to their comparative advantage. Financial globalization then induces more specialization and more trade. The present framework yields explicit closed-form solutions for the volume and the structure of trade. Empirical results support the implications of the theory. Trade in financially open countries is (i) higher, (ii) more dependent on productivity differences, and (iii) less sensitive to industry risks.
Other form:	Print version: Koren, Miklós, 1976- Financial globalization, portfolio diversification, and the pattern of international trade. Washington, D.C. : International Monetary Fund, 2003
Standard no.:	10.5089/9781451920215.001

Table of Contents:

Contents
I. INTRODUCTION
II. RELATED LITERATURE
III. THE MODEL
A. Production
B. Portfolio Choice
C. Asset Markets
IV. EMPIRICAL RESULTS
A. Implications of the Model
B. Data
C. Results
V. CONCLUSION
APPENDIX I. PROOF OF THEOREM 1
APPENDIX II. DATA APPENDIX
REFERENCES