Naudé, Wim; Gries, Thomas; Bilkic, Natasa - Institute for the Study of Labor (IZA) - 2013
In "new" new international trade theory, whether firms export or not are determined by their productivity. These models … an alternative way to model whether firms export or not, namely as a firm-level decision akin to an investment decision … with a real option value. We show that endogenizing the export decision is consistent with patterns of productivity and …