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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/10009764401
We investigate theoretically and empirically how exporters adjust their markups across destinations depending on … unit, our model predicts that markups rise with distance and fall with tariffs, but these effects are heterogeneous and are …
Persistent link: https://www.econbiz.de/10012157845
Recent theoretical works suggest that migrants carry their social networks when moving across borders and that they bridge the information gap between partner countries. We derive a theoretical model where migrants reduce informational trade barriers and thus enhance exports. The model is...
Persistent link: https://www.econbiz.de/10010296336
I show in this paper that incomplete contracts affect a firm's decision about serving foreign customers through exports or local sales from an affiliated plant. When contracts between two agents within a firm are too costly to write, the share of multinational firms may be higher or lower...
Persistent link: https://www.econbiz.de/10010274741
In this paper we examine the reasons behind the remarkable export performance of transition economies in the last two decades. Following Redding and Venables (2004, 2004a) and Fugazza (2004), we decompose export performance into the gains due to the advantageous access to foreign markets and...
Persistent link: https://www.econbiz.de/10010314798
This paper develops an open economy firm-heterogeneous model where the combination of market rigidities and exchange rate uncertainty acts like a barrier to trade and modifies a firm's optimal choice in terms of production and pricing. The existence of price and labor rigidities, coupled with...
Persistent link: https://www.econbiz.de/10010316775
This paper develops an open economy firm-heterogeneous model where the combination of market rigidities and exchange rate uncertainty acts like a barrier to trade and modifies a firm's optimal choice in terms of production and pricing. The existence of price and labor rigidities, coupled with...
Persistent link: https://www.econbiz.de/10003891877
I show in this paper that incomplete contracts affect a firm's decision about serving foreign customers through exports or local sales from an affiliated plant. When contracts between two agents within a firm are too costly to write, the share of multinational firms may be higher or lower...
Persistent link: https://www.econbiz.de/10008732270
In this paper we examine the reasons behind the remarkable export performance of transition economies in the last two decades. Following Redding and Venables (2004, 2004a) and Fugazza (2004), we decompose export performance into the gains due to the advantageous access to foreign markets and...
Persistent link: https://www.econbiz.de/10009734004
Recent empirical research in international trade emphasizes the role of the extensive and intensive margin to the export growth. This paper examines the sources of export growth in Turkey. For this purpose, the study decomposes Turkey's export growth into extensive and intensive margins by using...
Persistent link: https://www.econbiz.de/10010251705