Economies of Scale and the Size of Exporters

Armenter, Roc; Koren, Miklós

doi:10.2139/ssrn.1448001

Cited by 11 publications

(14 citation statements)

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“…export sales equal to p lh (c)q lh (c). Then, aggregating over all exporters yields the aggregate exports from l to h. These, by (5), (6) and (9), evaluate to:…”

Section: Trade Freeness Matrix (P )mentioning

confidence: 99%

Productivity and Firm Selection: Quantifying the 'New' Gains from Trade

et al. 2011

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We discuss how standard computable equilibrium models of trade policy can be enriched with selection effects. This is achieved by estimating and simulating a partial equilibrium model that accounts for a number of real world effects of trade liberalisation: richer availability of product varieties; tougher competition and weaker market power of firms; better exploitation of economies of scale; and, of course, efficiency gains via firms selection. The model is estimated on EU data and then simulated in counterfactual scenarios. Gains from trade are much larger in the presence of selection effects with substantial variability across countries and sectors.

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“…export sales equal to p lh (c)q lh (c). Then, aggregating over all exporters yields the aggregate exports from l to h. These, by (5), (6) and (9), evaluate to:…”

Section: Trade Freeness Matrix (P )mentioning

confidence: 99%

Productivity and Firm Selection: Quantifying the 'New' Gains from Trade

et al. 2011

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“…For example, Lawless (2009) and Eaton et al (2011) note the inability of these models to explain several features of …rm-level data such as the fact that …rms do not enter markets according to an exact hierarchy or that exporters sell more at home than predicted. Armenter and Koren (2014) show that Melitz-type models cannot match both the size and the share of exporters given the observed distribution of total sales. Chaney (2013) points out that they are unable to simultaneously match a number of stylized facts regarding the distribution of the geographic location and the number of foreign markets accessed by di¤erent …rms.…”

Section: Accepted Articlementioning

confidence: 90%

“…[3] Armenter, R. and Koren, M. (2014). 'Economies of scale and the size of exporters', Journal of the European Economics Association, forthcoming.…”

Section: Accepted Articlementioning

confidence: 99%

“…We do so by mimicking the procedures used by Statistics Canada in computing measured trade and productivity growth as closely as possible in the construction of our theoretical moments. 3 Our central result is that our benchmark model is inherently incapable of matching both trade and productivity increases. This is true when we use sectorial parameter estimates obtained from other data sources, or when we choose parameters to minimize deviations between theoretical and empirical moments via a simple GMM procedure.…”

mentioning

confidence: 97%

“…We also investigate whether the baseline model's poor performance is due to the fact that it abstracts from many important real-world determinants of trade and produc- 3 Section 3 and Appendix A discuss in detail how measured real productivity growth arises in our modeling frameworks despite the presence of …xed markups.…”

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confidence: 99%

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Tariffs, Trade and Productivity: A Quantitative Evaluation of Heterogeneous Firm Models

Breinlich

Cuñat

2015

Econ J

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We examine the quantitative predictions of heterogeneous …rm in the context of the Canada -US Free Trade Agreement (CUSFTA) of 1989. We compute predicted increases in trade ‡ows and measured productivity and compare them to the post-CUSFTA increases observed in the data. Most models predict increases in measured productivity that are too low by an order of magnitude relative to predicted increases in trade ‡ows. A multi-product …rm extension that allows for within-…rm productivity increases has the potential to reconcile model predictions with the data.Since the seminal contribution by Melitz (2003), heterogeneous …rm models have become a widely used instrument in the 'toolkit'of international economists. These models This work builds upon our earlier (unpublished) paper "Trade Liberalization and Heterogeneous Firm Models: An Evaluation Using the Canada -US Free Trade Agreement". We are grateful to Andy Bernard, Gordon Hanson, Miklós Koren, Sam Kortum, Marc Melitz, Alex Michaelides and Ralph Ossa for helpful discussions. We would also like to thank seminar participants at Banco de España, CEU, Chicago, CORE, the EEA Málaga Meeting, EUI, Fundación Rafael del Pino, Koç University, LSE, Munich, NBER Summer Institute, GIST and Vienna for comments and suggestions. All errors remain ours. Cuñat gratefully acknowledges …nancial support by the Austrian Science Fund (FWF #AP23424-G11). Corresponding author: Holger Breinlich, University of Essex, Department of Economics, Wivenhoe Park, Colchester CO4 3SQ, United Kingdom; Email address: hbrein@essex.ac.uk.This article has been accepted for publication and undergone full peer review but has not been through the copyediting, typesetting, pagination and proofreading process, which may lead to differences between this version and the Version of Record. Please cite this article as doi: 10.1111/ecoj.12218This article is protected by copyright. All rights reserved. Accepted Articlewere motivated by a number of stylized facts: (i) the existence of large productivity differences among …rms within the same industry; (ii) the higher productivity of exporting …rms as compared to non-exporting …rms; (iii) the large levels of resource reallocations across …rms within industries following trade liberalization reforms; and (iv) the resulting gains in aggregate industry productivity. In a generalization of the Krugman (1979Krugman ( , 1980 model, the introduction of within-industry productivity heterogeneity and beachhead costs enables this class of models to produce equilibria and comparative statics along the lines of these facts.While these models are thus qualitatively consistent with available empirical evidence, a thorough evaluation of their quantitative predictions with regards to trade liberalization is still at an early stage. This is despite the fact that the models'quantitative predictions for the link between trade liberalization and changes in aggregate productivity or trade ‡ows are of …rst-order importance for economic policy and welfare analysis. In this paper, we ...

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Exports, investment and firm-level sales volatility

Riaño

2011

Rev World Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Counterfactual experiments show that large adjustments in total sales associated with entry into foreign markets increase the volatility of total sales for exporting firms. Terms of use: Documents in EconStor mayJEL-Code: F120, E220.

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Economies of Scale and the Size of Exporters

Cited by 11 publications

References 45 publications

Productivity and Firm Selection: Quantifying the 'New' Gains from Trade

Productivity and Firm Selection: Quantifying the 'New' Gains from Trade

Tariffs, Trade and Productivity: A Quantitative Evaluation of Heterogeneous Firm Models

Exports, investment and firm-level sales volatility

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