The Impact of Trade with Pure Exporters

Gao, Bo and Tvede, Mich (2021) The Impact of Trade with Pure Exporters. Review of International Economics. pp. 1-48. ISSN 0965-7576 (In Press)

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We extend the Melitz model to include pure exporters and study how they influence economic performance. We find that the presence of pure exporters lowers the productivity premium of exporters. Moreover, if there is a large portion of pure exporters, then international trade lowers average productivity, but not welfare. Moreover, we explore how trade liberalization in form of lower entry cost into foreign markets and lower variable export cost influences the distribution of firms between pure exporters, ordinary exporters and non-exporters

Item Type: Article
Uncontrolled Keywords: pure exporters,firm heterogeneity,trade liberalization,productivity premium
Faculty \ School: Faculty of Social Sciences > School of Economics
Depositing User: LivePure Connector
Date Deposited: 21 Apr 2021 23:49
Last Modified: 23 Apr 2021 23:49

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