Granular Comparative Advantage

Gaubert, Cécile; Itskhoki, Oleg

doi:10.3386/w24807

Cited by 48 publications

(57 citation statements)

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“…This result suggests that country‐level variables still play a very important role in the definition of countries' trade pattern. This result is in line with the results by Gaubert and Itskhoki () on the relative contribution of fundamental and granular comparative advantage to the differences in specialization across French industries.…”

Section: Introductionsupporting

confidence: 92%

“…To answer this question, I decompose the total variation in the percentage of expert chess players into fundamental and granular comparative advantage. Following Gaubert and Itskhoki (), I calculate a variance‐based decomposition and a regression‐based decomposition. In the first calculation, the total variance in the percentage of expert players across countries is decomposed into a fundamental comparative advantage term, a granular comparative advantage term, and a covariance term:

italicvar ((), N) = italicvar ((), A) + italicvar ((), N - A) + 2 italiccov ((),, A, N - A)

where N is the number of expert chess players, as percentage of population, and A fundamental comparative advantage at chess.…”

Section: Fundamental and Granular Comparative Advantage At Chessmentioning

confidence: 99%

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Fundamental Versus Granular Comparative Advantage: An Analysis Using Chess Data

Minondo

2017

Kyklos

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Summary The Ricardian and Heckscher‐Ohlin models of international trade contend that firms do not play any role in shaping countries' export specialization. However, the evidence shows that few firms dominate exports in many countries. This paper analyzes the relative contribution of fundamental (country) and granular (individual) comparative advantage to the differences in specialization across countries in a particular activity: chess. Using data on the quality of around 146,000 chess players in 106 countries in 2015, I find that fundamental comparative advantage is the main contributor to the variation in countries' specialization in chess. However, the contribution of granular comparative advantage becomes larger when analyzing specialization in very high‐quality chess players. Despite the appearance of chess servers that allow playing online and offer tools to improve chess skills, I do not find convergence in fundamental comparative advantage over the period 2001‐2015.

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Section: Introductionsupporting

confidence: 92%

italicvar ((), N) = italicvar ((), A) + italicvar ((), N - A) + 2 italiccov ((),, A, N - A)

where N is the number of expert chess players, as percentage of population, and A fundamental comparative advantage at chess.…”

Section: Fundamental and Granular Comparative Advantage At Chessmentioning

confidence: 99%

Fundamental Versus Granular Comparative Advantage: An Analysis Using Chess Data

Minondo

2017

Kyklos

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“…In a broader sense, our research also relates to the literature that has introduced granularity into trade models (Eaton et al 2012;Bernard et al 2016), and to the literature that has applied these models to estimate the role of fundamental and granular forces in shaping the comparative advantage (Gaubert and Itskhoki 2016). Our research provides empirical support for this class of models.…”

Section: Introductionmentioning

confidence: 55%

“…However, we should qualify this statement, since we do not know how the remaining firms would behave if the superstars disappeared. Using a different methodology, Gaubert and Itskhoki (2016) analyze the contribution of granular (superstars-based) comparative advantage and fundamental (country-based) comparative advantage to differences in the share of exports across French industries. They find that granular comparative advantage explains 30% of the differences, and fundamental comparative advantage explains 70% of the differences.…”

Section: Concentration Across Product Classificationsmentioning

confidence: 99%

The granularity of Spanish exports

Fernández

Mínguez

Minondo

et al. 2017

SERIEs

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Using data for all exporters, we show that it is a small group of firms that dominate exports in Spain. For example, in 2015 the top 200 firms were responsible for half of Spanish exports. This concentration has not changed substantially over the 1997-2015 period. The dominance of a few firms, a phenomenon denoted as granularity, also defines the specialization of Spanish exports. If top exporters disappeared, Spain would lose its revealed comparative advantage in 60% of industries, whichWe would like to thank Francisco Olarte for preparing the SABI data used in the empirical analyses and Jordi Paniagua for his valuable suggestions and comments. We would also like to thank the Customs and Excise Department of the Spanish Revenue Agency (AEAT) for providing essential information for this paper. We gratefully acknowledge financial support from the Spanish Ministry of Economy and Competitiveness (MINECO ECO2015-68057-R and ECO2016-79650-P, co-financed with FEDER), the Basque Government Department of Education, Language Policy and Culture (IT885-16), and the Generalitat Valenciana (Prometeo II-2014-053

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“…Indeed, the entry of firms into new markets is not smooth-a small tariff change will likely not affect firm behavior much, although a large trade agreement or devaluation could have large effects on market entry. Atkeson and Burstein (2008), Eaton, Kortum, and Sotelo (2015), and Gaubert and Itskhoki (2015) pioneered early work studying the impact of shocks on discrete entry decisions, where potentially large firms enter based on an ordering of productivity.…”

Section: -Conclusion and Directions For Future Researchmentioning

confidence: 99%

Firms in international trade

Díez¹,

Mora²,

Spearot³

2018

Handbook of International Trade and Transportation

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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. Firms play a critical role in the global economy. In this paper, we survey the behavior of firms in the international economy, both in theory and in the data. We first summarize the key empirical facts that motivate the study of firms in trade. Then, we detail recent theoretical developments on the micro-foundations of firm behavior in an international context, focusing on how firms select into exporting, and how firms respond to international shocks. Finally, we turn to a "real world," empirically focused view of exporting, beginning with the growth dynamics of firms expanding to global markets, and then addressing the critical financing decisions firms make when engaging in international commerce. We conclude with directions for future research. Terms of use: Documents in EconStor may JEL Classifications: F10, F12, F14

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Granular Comparative Advantage

Cited by 48 publications

References 0 publications

Fundamental Versus Granular Comparative Advantage: An Analysis Using Chess Data

Fundamental Versus Granular Comparative Advantage: An Analysis Using Chess Data

The granularity of Spanish exports

Firms in international trade

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