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Financial Development and International Trade

Side by side images: a photo of Fernando Leibovici and the cover of the Journal of Political Economy

Senior economist Fernando Leibovici's paper "Financial Development and International Trade," has been accepted in the Journal of Political Economy

The article looks at both industry-level and aggregate implications of financial development on international trade to determine the extent to which access to external finance impacts the extent of international trade. The research shows that, while financial frictions have a significant impact on international trade at the industry level, they have a minor impact on it at the aggregate level. 

A full text preprint of the article is available from the journal's website. The 2018 working paper is available on our site here