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What insights can be gained from bringing the theory of the firm to the global economy? I discuss several new features of the world economy that can be explained by incorporating the theory of the firm into the theory of international trade. Among the new features I discuss are the move to...
Persistent link: https://www.econbiz.de/10010877726
This paper quantifies the effect of the government-controlled appreciation of the Chinese renminbi (RMB) vis-à-vis the USD from 2005 to 2008 on the prices charged by US producers. As the RMB during that time was pegged to a basket of currencies, the empirical strategy must account for the fact...
Persistent link: https://www.econbiz.de/10010535633
Mexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a large proportion of its labor force remains employed in the informal sector. Since one of the main objectives of the maquiladora program was to increase formal employment, we...
Persistent link: https://www.econbiz.de/10009391722
still produces. In this case, the operating productivity cutoff is lowered while the exporting cutoff increases in the face …
Persistent link: https://www.econbiz.de/10009364732
This paper provides a direct test of how fixed export costs and productivity jointly determine firm-level export …, while those with higher productivity export more. These outcomes are the foundation of the widely-used sorting mechanism in … the trade models with firm heterogeneity. A particular and novel finding is that high-productivity nonexporters face …
Persistent link: https://www.econbiz.de/10010752432
This paper provides first firm-level evidence of the links between income inequality and the patterns of trade and export prices. We identify a theoretical mechanism behind these links, which suggests that a more unequal income distribution leads to higher average prices. We test the theory...
Persistent link: https://www.econbiz.de/10010671575
Why is it that exporter productivity premia (EPP) differ so widely in size? We take this question to the theory and to … EPPs across sectors, and hence across countries, can be explained by the variation in productivity dispersion, trade costs …
Persistent link: https://www.econbiz.de/10010741313
. Applying propensity score matching to control for differences across firms in terms of labor productivity, size, etc., we find …
Persistent link: https://www.econbiz.de/10010681216
related to firm productivity and firm exports. Emission intensity is, however, negatively related to firms. productivity and … exports. The basic reason for these results is that a larger production scale supports more investments in abatement and, in …
Persistent link: https://www.econbiz.de/10010779408
Helpman, Melitz and Rubinstein (2008) derive gravity equations to estimate effects of trade barriers on the intensive and extensive margins of trade. They exploit the frequency of zeros in aggregate bilateral trade data to identify effects on the extensive margin and to obtain controls for firm...
Persistent link: https://www.econbiz.de/10008872216