I use a cross-country cross-industry dataset to examine whether countries with a higher degree
of financial integration will exhibit a comparative advantage in the exports of those industries that rely more on external financing. The outcome of this research shows that for those industries relying more on external finance, financial integration may not only benefit their relative advantages in exports, but also intensify their export volatilities. The impact of
financial integration on the exports of industries may depend on a country’s stage of economic
development and the quality of its economic institutions. However, no such heterogeneity is
observed for export volatility.