BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//Talks.cam//talks.cam.ac.uk//
X-WR-CALNAME:Talks.cam
BEGIN:VEVENT
SUMMARY:Comparative Advantage and Specialization in Bank Lending - Dr Dani
 el Paravisini  \, The London School of Economics
DTSTART:20141016T160000Z
DTEND:20141016T170000Z
UID:TALK54818@talks.cam.ac.uk
CONTACT:Cerf Admin
DESCRIPTION:We develop an empirical approach for identifying comparative a
 dvantages in bank lending. Using matched credit-export data from Peru\, we
  first uncover patterns of bank specialization by export market: every cou
 ntry has a subset of banks with an abnormally large loan portfolio exposur
 e to its exports. Using outliers to measure specialization\, we use a reve
 aled preference approach to show that bank specialization reflects a compa
 rative advantage in lending. We show\, in specifications that saturate all
  firm-time and bank-time variation\, that firms that expand exports to a d
 estination market tend to expand borrowing disproportionately more from ba
 nks specialized in that destination market. Bank comparative advantages in
 crease with bank size in the cross section\, and in the time series after 
 mergers. Our results challenge the perceived view that\, outside relations
 hip lending\, banks are perfectly substitutable sources of funding.
LOCATION:Barbara White Room\, Newnham College
END:VEVENT
END:VCALENDAR