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Recent contributions on offshoring often assume that firms can freely split their production process into separate steps which can be ranked according to the cost savings from producing abroad. We replace this assumption by the notion of a technologically determined sequence of production steps....
Persistent link: https://www.econbiz.de/10011430068
In this paper I investigate the impact of a decrease in trade costs on firms' decisions to export. The main contribution of this paper is to evaluate empirically the theoretical predictions of several models of multi-product exporters. The focus is on the firm export entry decision and the...
Persistent link: https://www.econbiz.de/10013208715
Using a matching approach, we compare the productivity trajectories of future exporters and matched and unmatched non …-exporters. Future exporters have higher productivity than do unmatched non-exporters before entry into the export market, which … indicates self-selection into exports. More interestingly, we also find a productivity increase among future exporters relative …
Persistent link: https://www.econbiz.de/10012654351
In his seminal paper, starting from the premise that productivity is heterogeneous across firms, Melitz (2003) nicely … accounts for the stylized fact that the level of individual productivity is key in determining the capability of a firm to … depends on both productivity and net worth, and both are heterogeneous across firms. We show that firms with low productivity …
Persistent link: https://www.econbiz.de/10011739616
In this paper, we develop a two-sector general equilibrium trade model which includes offshoring, sequential production, and endogenous market structures. We analyze how relative factor endowments and various forms of globalization and technological change affect equilibrium offshoring patterns....
Persistent link: https://www.econbiz.de/10011430106
Conventional wisdom in economic history suggests that conflict between countries can be enormously disruptive of economic activity, especially international trade. Yet nothing is known empirically about these effects in large samples. We study the effects of war on bilateral trade for almost all...
Persistent link: https://www.econbiz.de/10010266399
Working with a panel dataset of of OECD countries over the decade 1994-2004, we examine linkages between cross-border trade and FDI in the service sectors. We first develop a consistent analytical framework for the application of the gravity model jointly to services trade and commercial...
Persistent link: https://www.econbiz.de/10010294854
We develop a new analytical framework for both cross-border services trade and services trade through foreign affiliates, based on heterogeneous firms operating under oligopoly. This leads to direct predictions about choice of services delivery (mode of delivery) at the firm level, and about the...
Persistent link: https://www.econbiz.de/10010294882
Quantitative results from a large class of structural gravity models of international trade depend critically on the elasticity of trade with respect to trade frictions. We develop a new simulated method of moments estimator to estimate this elasticity from disaggregate price and trade-flow data...
Persistent link: https://www.econbiz.de/10010282112
In recent years, two important related developments have transformed the nature of world trade: the explosive growth of Chinese trade, and the growth of vertically specialized trade due to international production fragmentation. The literature in each of these two separate topics is large and...
Persistent link: https://www.econbiz.de/10010285312