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Financial Frictions and International Trade

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  • David Kohn
  • Fernando Leibovici
  • Michal Szkup

Abstract

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.

Suggested Citation

  • David Kohn & Fernando Leibovici & Michal Szkup, 2021. "Financial Frictions and International Trade," Documentos de Trabajo 563, Instituto de Economia. Pontificia Universidad Católica de Chile..
    • Handle: RePEc:ioe:doctra:563
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    File URL: https://www.economia.uc.cl/docs/doctra/dt-563.pdf
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    References listed on IDEAS

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    2. Benjamin Moll, 2014. "Productivity Losses from Financial Frictions: Can Self-Financing Undo Capital Misallocation?," American Economic Review, American Economic Association, vol. 104(10), pages 3186-3221, October.
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    7. Kalina Manova & Shang-Jin Wei & Zhiwei Zhang, 2015. "Firm Exports and Multinational Activity Under Credit Constraints," The Review of Economics and Statistics, MIT Press, vol. 97(3), pages 574-588, July.
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