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This paper develops an empirical model of consumer taste in twenty-nine Belgium food industries for the period from 1998-2005 to generate a "taste distance" measure of over 1,800 firm-product exports to 53 country destinations. We estimate consumer taste using a control function approach and...
Persistent link: https://www.econbiz.de/10013494393
Starting from the premise that productivity is heterogeneous across firms, Melitz (2003) explains why individual … productivity is key in determining the capability of a firm to export. In this paper we build a model along Melitz's lines to show … international markets. We show that firms with low productivity may still be able to penetrate foreign markets provided they have …
Persistent link: https://www.econbiz.de/10011492068
inward trade barriers affect productivity. The production function of Brazilian manufacturers is estimated at the ISIC3 two …-digit level under various alternatives, including an extension of Olley and Pakes' (1996) procedure. Firm-level productivity is … inferred and then related to trade. Findings suggest that (1) foreign competition pressures firms to raise productivity …
Persistent link: https://www.econbiz.de/10011402582
job destruction in low-productivity firms and job creation in high-productivity firms. In contrast, the net effect of … reductions in Chinese input tariffs is limited to job destruction in low-productivity ordinary exporters. …
Persistent link: https://www.econbiz.de/10011743088
International trade is dominated by a small number of very large firms. Models of trade with heterogeneous firms have been developed to study the causes and consequences of this observation. The canonical model of trade with heterogeneous firms shows that trade leads to between-firm...
Persistent link: https://www.econbiz.de/10012669016
How do exporters expand their product scope and geographical presence? We argue that new exporters are uncertain about their profitability in different countries and products, but learn it as they start to export. As a consequence, exporters add products and countries sequentially, in an...
Persistent link: https://www.econbiz.de/10012534564
output and average productivity, with stronger positive productivity effects for newly imported intermediate inputs. However …
Persistent link: https://www.econbiz.de/10011397180
During the early 1990s Germany received over half a million Yugoslavian refugees fleeing war. By 2000, many of these refugees, who were under temporary protection, had been repatriated. We exploit this historical episode to provide causal evidence on the role that migrants play explaining export...
Persistent link: https://www.econbiz.de/10011933941
Quantitative results from a large class of international trade models depend critically on the elasticity of trade with respect to trade frictions. We develop a simulated method of moments estimator to estimate this elasticity from disaggregate price and trade-flow data using the Ricardian...
Persistent link: https://www.econbiz.de/10009010513
rest of the world relative to the status quo. However, there is substantial heterogeneity across the 134 geographical …
Persistent link: https://www.econbiz.de/10010469287