Financial Constraints, the Distribution of Wealth and International Trade

Emmanuel Amissah*, Spiros Bougheas, Rod Falvey

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

2 Citations (Scopus)


We develop a simple theoretical model to examine the impact of the distribution of wealth on the patterns of trade when capital markets are imperfect. Our model predicts that the dispersion of wealth can be a determinant of comparative advantage for low income countries with poor financial institutions. We find support for these prediction using export and financial panel data from a large sample of countries.

Original languageEnglish
Pages (from-to)707-724
Number of pages18
JournalWorld Economy
Issue number5
Publication statusPublished - May 2011


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