Download or read book Firm Productivity Technological Heterogeneity and Endogenous Exports written by Emir Malikov and published by . This book was released on 2017 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Exporters tend to be more productive than non-exporting firms, and uncovering the extent of these productivity differentials as well as causes thereof has long been one of the core topics in the literature. This paper focuses on the issues pertaining to robust empirical modeling of the intricate endogenous relationship between the firm's export behavior and its productivity. I provide a new synthesized (nonparametric) methodology for the structural control-function-based identification of unobserved firm productivity in the presence of (i) endogenous self-selection into export markets, (ii) dependence of productivity evolution on the firm's past export experiences and (iii) potential technological heterogeneity in the production of for-export and for-domestic-sale outputs. The model offers a useful addition to the toolkit of practitioners interested in studying the nexus between firm productivity and export behavior. I showcase the proposed methodology by applying it to the firm-level data on China's apparel industry, one of the country's most export-oriented manufacturing sectors, during the 1999-2006 period.
Download or read book Trade Finance and Endogenous Firms Heterogeneity written by Alessandra Bonfiglioli and published by . This book was released on 2016 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study how financial frictions affect firm-level heterogeneity and trade. We build a model where productivity differences across monopolistically competitive firms are endogenous and depend on investment decisions at the entry stage. By increasing entry costs, financial frictions lower the exit cutoff and hence the value of investing in bigger projects with more dispersed outcomes. As a result, credit frictions make firms smaller and more homogeneous, and hinder the volume of exports. Export opportunities, instead, shift expected profits to the tail and increase the value of technological heterogeneity. We test these predictions using comparable measures of sales dispersion within 365 manufacturing industries in 119 countries, built from highly disaggregated US import data. Consistent with the model, financial development increases sales dispersion, especially in more financially vulnerable industries; sales dispersion is also increasing in measures of comparative advantage. These results can be important for explaining the effect of financial development and factor endowments on export sales.
Download or read book Endogenous Firm Heterogeneity and the Dynamics of Trade Liberalization written by Josh Ederington and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we build a dynamic model with endogenous firm-level productivity that generates firm heterogeneity as an equilibrium outcome. Firm heterogeneity arises in equilibrium from the gradual diffusion of a technological innovation through the industry. We investigate the effects of international trade on technological diffusion and show that trade has a generally positive impact on the equilibrium rate of adoption (and hence firm-level productivity). In addition, the model can replicate the stylized fact that exporters are larger and more productive than non-exporters. Finally, we show that the model can explain two puzzling facts from the Canadian experience with NAFTA: Why US tariff reductions decreased the number of Canadian firms; and why Canadian tariff reductions lowered the productivity of the most productive Canadian firms but raised it for the least productive firms.
Download or read book Essays on firm heterogeneity and quality in international trade written by Eddy Bekkers and published by Rozenberg Publishers. This book was released on 2008 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: The thesis is organized as follows. Chapter 2 contains a survey of the three most in‡fluential models on fi…rm heterogeneity and of the most important empirical work on firrm heterogeneity. The chapter starts with a brief review of the homogeneous productivity imperfect competition literature. Chapter 2 …finishes with a comparison of the three most in‡fluential models of fi…rm heterogeneity and the oligopoly model put forward in the thesis. Chapter 3 addresses exporting uncertainty under heterogeneous popularity. Chapter 4 contains the chapter on …firm heterogeneity under oligopoly. Chapter 5 constitutes the models on …firm heterogeneity and endogenous quality. Chapter 6 points out the within-sector specialization model. Chapter 7 addresses the effect of importer characteristics on unit values and the role of markups and quality to explain this effect. Chapter 8 concludes.
Download or read book Comparative Advantage and Heterogeneous Firms written by Andrew B. Bernard and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines how country, industry and firm characteristics interact in general equilibrium to determine nations' responses to trade liberalization. When firms possess heterogeneous productivity, countries differ in relative factor abundance and industries vary in factor intensity, falling trade costs induce reallocations of resources both within and across industries and countries. These reallocations generate substantial job turnover in all sectors, spur relatively more creative destruction in comparative advantage industries than comparative disadvantage industries, and magnify ex ante comparative advantage to create additional welfare gains from trade. The relative ascendance of high-productivity firms within industries boosts aggregate productivity and drives down consumer prices. In contrast with the neoclassical model, these price declines dampen and can even reverse the real wage losses of scarce factors as countries liberalize.
Download or read book Faraway So Close Technology Diffusion and Firm Heterogeneity in the Medium Term Cycle of Advanced Economies written by Mónica Correa-López and published by . This book was released on 2018 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: Las grandes empresas de Estados Unidos, al difundir tecnología a través del comercio de intermedios, parecen ser clave para la producción de Europa en el medio plazo. De cara a explicar esta evidencia, el presente trabajo desarrolla un modelo de dos países con crecimiento endógeno en variedades, heterogeneidad empresarial y comercio. Una desaceleración de la productividad total de los factores en Estados Unidos provoca una marcada recesión en Europa, mientras que un shock negativo específico a la inversión también da lugar a una recesión prolongada en Estados Unidos, dado que el PIB y la productividad a nivel de empresa permanecen por debajo de su tendencia más de una década. Las empresas heterogéneas, con cambios endógenos de productividad, y las respuestas de innovadores y adoptadores determinan el ajuste en el medio plazo, a la vez que se despliegan los procesos de sustitución de importaciones.
Download or read book Essays on Firm Dynamics Endogenous Growth and International Trade written by Cristiana Benedetti Fasil and published by . This book was released on 2011 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent empirical firm level studies reveal the structural heterogeneity of firms in process and product innovation, as well as the central role of product quality in determining world trade patterns and intensities. This calls for a better understanding of the link between firm heterogeneity and the innovation and export decisions of firms which are at the base of productivity growth and, hence, economic growth and development. My dissertation contributes to this debate focusing on the supply side. I propose a novel way to model the production technology of firms by introducing two attributes of firm heterogeneity: cost efficiency and product quality. The goal of the first thesis chapter is to study the effects of process and product innovation on firm dynamics, productivity and endogenous long run growth. In the second chapter an open economy framework with trade between symmetric countries is analyzed. Here the focus is on quantifying the impact of trade as well as trade liberalization on firm innovation dynamics and productivity- and aggregate growth. The third chapter abstracts from endogenous growth and examines the role of the two attributes of firm heterogeneity in shaping the trade patterns and intensities within and across developed and developing countries.
Download or read book Firm Heterogeneity Exporting and Foreign Direct Investment written by and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Firm Heterogeneity Productivity and the Extensive Margins of Trade Differences Between Manufacturing Firms in East and West Germany written by Astrid Krenz and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: I investigate the relationship between the extensive margins of imports and exports (the number of countries traded with and the number of goods traded) and firm productivity using a newly constructed and rich panel data set of German manufacturing firms for the years 2009-2014. I do for the first time construct a data set based on German trade data and firm data that accounts for the substantial change in the German register of firms statistics after 2012. The extensive margins are significantly and positively associated with firm-level productivity both for West and East German firms in cross-sectional estimations, which is in line with the previous literature. Productivity is higher in firms that import and export more goods and trade with more countries. However, results based on panel analyses reveal that especially for East German firms the relationship becomes insignificant when unobserved firm heterogeneity is controlled for. The results point to a high degree of firm heterogeneity, of factors that are relevant and differ within the firm only, for firms in East Germany.
Download or read book Firm Heterogeneity and Export Participation written by Matthew A. Cole and published by . This book was released on 2008 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Study of the Heterogeneous Effects of Globalization on Firm Productivity written by In-ch'ŏl Kim (Researcher in economics) and published by . This book was released on 2017 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Firm Heterogeneity Trade Multinationals and Growth written by Tommy T. Wu and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper I study and quantify the long-run effects of openness to trade and multinational production in a model of endogenous innovation with firm heterogeneity. When trade is liberalized, some multinationals find it more profitable to export and forgo the cost of maintaining capacities in multiple markets. I examine how this trade-off can have long-run effects on growth and welfare. The model emphasizes the importance of firms' ability to access multiple markets in providing incentives for innovation and highlights the role of technology quality in international technology spillovers in promoting growth. I find that by shutting down openness to both trade and multinational production with other OECD countries, the US would experience a welfare cost that is equivalent to a 39% drop in consumption, with the dynamic effect accounting for at least 40% of the estimated welfare cost. Since multinationals tend to use relatively high quality technology, trade liberalization alone can lead to an adverse effect on economic growth and consumer welfare by reducing the level of multinational production.
Download or read book Linking Exports Technology and Productivity written by Bee-Yan Aw and published by . This book was released on 1993 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Trade Finance and Endogenous Firm Heterogeneity written by Alessandra Bonfiglioli and published by . This book was released on 2016 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study how financial frictions affect firm-level heterogeneity and trade. We build a model where productivity differences across monopolistically competitive firms are endogenous and depend on investment decisions at the entry stage. By increasing entry costs, financial frictions lower the exit cutoff and hence the value of investing in bigger projects with more dispersed outcomes. As a result, credit frictions make firms smaller and more homogeneous, and hinder the volume of exports. Export opportunities, instead, shift expected profits to the tail and increase the value of technological heterogeneity. We test these predictions using comparable measures of sales dispersion within 365 manufacturing industries in 119 countries, built from highly disaggregated US import data. Consistent with the model, financial development increases sales dispersion, especially in more financially vulnerable industries; sales dispersion is also increasing in measures of comparative advantage. These results can be important for explaining the effect of financial development and factor endowments on export sales.
Download or read book Intellectual Property Enforcement Exports and Productivity written by Lai Huiwen and published by . This book was released on 2018 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study how provincial-level enforcement of intellectual property rights (IPRs) affects Chinese firms' decisions regarding exit, export, and the channels through which to receive technology transfer. Our findings provide insights into how variations in IPRs enforcement alter productivity. Our model combines the standard theory of heterogeneous firms with the endogenous choices of those firms concerning how they absorb international technologies through imitation or licensing. We show that, in this setting, the exit and export cutoff productivities differ from those in the standard environment, leading to a different sorting mechanism. We also predict that stronger IPRs change the decisions firms make concerning their mode of technology transfer, further altering their productivity and export possibilities. Empirical tests based on a comprehensive dataset of Chinese firms from 2000 to 2006 support the model predictions.
Download or read book A Study of the Heterogeneous Effects of Globalization on Firm Productivity written by Inchul Kim and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this paper is to estimate the effect of globalization (export in particular) on firms' productivity distribution and then to suggest policy implication to improve government's export promotion policies. We consider the two long-standing issues in the globalization and productivity literature: heterogeneity among firms and endogeneity between globalization and productivity, which distinguishes our study from the existing ones, by employing instrumental variables and quantile regression methods.In the empirical analysis, we found statistically significant evidences that export has a positive effect on productivity for all exporting firms regardless of their location in the productivity distribution and that the effect of globalization on productivity becomes bigger as the productivity quantile becomes lower. The first finding implies export promotion policies can induce firms to higher productivity than otherwise. The second implies a firm with lower productivity can obtain relatively bigger productivity gain by engaging in export markets if only it successfully survives the market.Based on the findings, we suggest the following directions regarding export promotion policies. Considering only 2.6% of total small and medium enterprises (SMEs) participate in export we have potentially a large room for creating new exporting SMEs and improving their productivity. Hence government needs to keep strengthening various efforts trying to increase the number of exporting SMEs. When government designs and executes policies to support export, (i) it is critical to estimate ex ante the potential capability of SMEs to survive in export markets which is in turn related to the firm's productivity, (ii) it is advisable to support successful entries for a period of time long enough to settle the market since surviving is more difficult than entering, and (iii) it is crucial to evaluate ex post the consequence of policies and upgrade them on the ground of the policy performance, (iv) it is necessary to support indirect export via value chains, domestic as well as overseas, since they can play a pivotal role for SMEs to expand business activities outside country.
Download or read book Firm Heterogeneity Origin of Ownership and Export Participation written by Matthew A. Cole and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the relationship between firm heterogeneity and a firm's decision to export, using the annual survey of Thai manufacturing firms from 2001 to 2004. A significant contribution of this paper is that we are, for the first time, able to break down FDI by country of origin to observe whether the behaviour of MNEs differs by region of origin. We find that sunk entry costs and firm characteristics are important factors in explaining a firm's decision to export. Another important determinant is the ownership structure of the firm, with foreign-owned firms having a higher probability of exporting than domestically owned firms, although this differs across country of ownership with potentially important policy implications. Export platform FDI is used to explain the behaviour of foreign firms that invest in Thailand. Using three measures of total factor productivity, we also find that highly productive firms self-select into the export market. The implication for governments of developing countries is the need to think carefully about how and to whom they target their inward FDI policies as a means of growth. The heterogeneous behaviour of multinationals from different nations means that policies targeting specific regions or countries may be preferable to general tax concessions or the implementation of special economic zones that are open to all.
