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Article

David Kohn, Fernando Leibovici, and Michal Szkup

This article 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, across industries, and in the aggregate. We discuss related empirical, theoretical, and quantitative studies throughout.