Financial Frictions and International Trade
2021
This paper reviews recent studies on the impact of financial frictions on international trade.
We first present evidence on the relation between measures of access to external finance and
export decisions. We then present an analytical framework to analyze the impact of financial
frictions on firms’ export decisions. Finally, we review recent applications of this framework
to investigate the impact of financial frictions on international trade dynamics across firms,
industries, and in the aggregate. We discuss related empirical, theoretical, and quantitative
studies throughout.
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