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productive enough to overcome the entry costs of foreign markets. Once firms pass this productivity threshold, they all export … non-exporters. However, selecting high export potentials is difficult in practice. The contribution of this paper is to … characterize and identify these (high) export potentials. According to the Melitz (2003) model, potential exporters have to be …
Persistent link: https://www.econbiz.de/10012951688
This paper characterizes the dynamic empirical properties of country export capabilities in order to inform modelling … heavy-tailed distribution of industry export capabilities that is approximately log normal and whose shape is stable across … productivities. We establish that mean reversion in export capability, rather than indicative of convergence in productivities or …
Persistent link: https://www.econbiz.de/10013009768
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/10013057657
We investigate the role of workers' and managerial experience as a determinant of firm innovation and productivity in a … innovation and productivity. The effect of managerial experience measured by age on firm performance depends instead on the type … of firm: high age of managers and board members is bad for innovation and productivity growth, while costs and benefits …
Persistent link: https://www.econbiz.de/10013141023
drives low-productivity firms from the small country's home market, replacing them with high-productivity exporters from … abroad. This endogenous policy response creates a selection effect that increases the average productivity of home firms when …
Persistent link: https://www.econbiz.de/10013120658
We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
Persistent link: https://www.econbiz.de/10013120903
productivity - enhancing effect. The reform of fixed-term contracts instead did not produce the intended results: it induced a … substitution of temporary employees in favor of permanent ones and reduced capital intensity, generating productivity losses. We …
Persistent link: https://www.econbiz.de/10013122251
We use a proprietary data set on the floor-level operations at the Bhilai Rail and Structural Mill (RSM) in India to understand how output rose sharply in response to competitive pressures. Output increases came predominantly from reductions in production delays of various kinds. We model...
Persistent link: https://www.econbiz.de/10013122384
firms, and multiple asymmetric regions. Wages, productivity, consumption diversity, and markups across firms and markets are … by the Canada-US border. We find that Canadian average labor productivity increases by 8.03%, whereas US average labor … productivity rises by just 1.02%. Consumers' exposure to market power falls sizably by up to 12.11% in the Canadian provinces, and …
Persistent link: https://www.econbiz.de/10013097109
, those with intermediate productivity will export, and those with higher productivity will choose fragmentation. Among the … elsewhere) can be used by multinational firms which have different productivity to serve the market abroad when product chains … abroad by either horizontal or vertical FDI. Upon opening a market to trade, firms with the lowest productivity will exit …
Persistent link: https://www.econbiz.de/10013082006