Plants and Productivity in International Trade
Andrew B. Bernard,Andrew B. Bernard,Jonathan Eaton,J. Bradford Jensen,Samuel Kortum,Samuel Kortum,Samuel Kortum +6 more
TLDR
In this paper, the authors reconcile trade theory with plant-level export behavior, extending the Ricardian model to accommodate many countries, geographic barriers, and imperfect competition, and examine the impact of globalization and dollar appreciation on productivity, plant entry and exit, and labor turnover.Abstract:
We reconcile trade theory with plant-level export behavior, extending the Ricardian model to accommodate many countries, geographic barriers, and imperfect competition. Our model captures qualitatively basic facts about U.S. plants: (i) productivity dispersion, (ii) higher productivity among exporters, (iii) the small fraction who export, (iv) the small fraction earned from exports among exporting plants, and (v) the size advantage of exporters. Fitting the model to bilateral trade among the United States and 46 major trade partners, we examine the impact of globalization and dollar appreciation on productivity, plant entry and exit, and labor turnover in U.S. manufacturing. (JEL F11, F17, O33)read more
Citations
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The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
TL;DR: This paper developed a dynamic industry model with heterogeneous firms to analyze the intra-industry effects of international trade and showed how the exposure to trade will induce only the more productive firms to enter the export market (while some less productive firms continue to produce only for the domestic market).
Journal ArticleDOI
Export Versus FDI with Heterogeneous Firms
Elhanan Helpman,Elhanan Helpman,Elhanan Helpman,Marc J. Melitz,Marc J. Melitz,Marc J. Melitz,Stephen R. Yeaple +6 more
TL;DR: In this article, Helpman et al. introduce a simple multicountry, multisector model, in which firms face a proximity-concentration trade-off between exports and FDI.
Journal ArticleDOI
Technology, Geography, and Trade
Jonathan Eaton,Samuel Kortum +1 more
TL;DR: This article developed a Ricardian trade model that incorporates realistic geographic features into general equilibrium and delivered simple structural equations for bilateral trade with parameters relating to absolute advantage, comparative advantage, and geographic barriers.
Journal ArticleDOI
Market Size, Trade, and Productivity
TL;DR: In this paper, the authors develop a monopolistically competitive model of trade with firm heterogeneity and endogenous differences in the "toughness" of competition across markets, in terms of the number and average productivity of competing firms.
Journal ArticleDOI
Estimating Trade Flows: Trading Partners and Trading Volumes
TL;DR: In this paper, a simple model of international trade with heterogeneous firms is developed, which is consistent with a number of stylized features of the data and can predict positive and zero trade flows across pairs of countries, and it allows the number of exporting firms to vary across destination countries.
References
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Monopolistic competition and optimum product diversity
Avinash Dixit,Joseph E. Stiglitz +1 more
TL;DR: In this article, Pettengill tests whether there is an excessive number of firms in a monopolistically competitive equilibrium by a device of considerable expository merit, and redistributes the resources thus released equally over the remaining firms in the sector, to see if welfare can be improved.
Journal ArticleDOI
Export Versus FDI with Heterogeneous Firms
Elhanan Helpman,Elhanan Helpman,Elhanan Helpman,Marc J. Melitz,Marc J. Melitz,Marc J. Melitz,Stephen R. Yeaple +6 more
TL;DR: In this article, Helpman et al. introduce a simple multicountry, multisector model, in which firms face a proximity-concentration trade-off between exports and FDI.
Journal ArticleDOI
Technology, Geography, and Trade
Jonathan Eaton,Samuel Kortum +1 more
TL;DR: This article developed a Ricardian trade model that incorporates realistic geographic features into general equilibrium and delivered simple structural equations for bilateral trade with parameters relating to absolute advantage, comparative advantage, and geographic barriers.
Journal ArticleDOI
Increasing returns, monopolistic competition, and international trade
TL;DR: The authors developed a simple, general equilibrium model of non-comparative advantage trade and showed that trade and gains from trade will occur, even between countries with identical tastes, technology, and factor endowments.
ReportDOI
The Dynamics of Productivity in the Telecommunications Equipment Industry
G. Steven Olley,Ariel Pakes +1 more
TL;DR: In this paper, an empirical focus is on estimating the parameters of a production function for the equipment industry, and then using those estimates to analyze the evolution of plant-level productivity.