Growth and risk: A view from international trade

• Main Authors: Krishna, Pravin, LEVCHENKO, Andrei A., MA, Lin, MALONEY, William F.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Product quality; Financial development; Risk; International Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2754; https://ink.library.smu.edu.sg/context/soe_research/article/3753/viewcontent/krishna_levchenko_ma_maloney_2023.pdf
• Institution: Singapore Management University

This paper studies the cross-country patterns of risky innovation and growth through the lens of international trade. We use a simple theoretical framework of risky quality upgrading by firms under varying levels of financial development to derive two predictions. First, the mean rate of quality gro...