Download or read book Product Quality Firm Heterogeneity and Trade Liberalization written by Antoine Gervais and published by . This book was released on 2014 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a framework for studying the general equilibrium effects of endogenous quality upgrading, a new margin of trade, on the welfare impact of trade liberalization. Unlike Fajgelbaum et al. (2011) which studies the effect of non homothetic preferences on output quality and welfare, the model extends Melitz (2003) by introducing endogenous quality differentiation and focuses on supply-side aspects. Among other results, in general equilibrium, trade liberalization decreases the share of high-quality varieties in exports and the average productivity of exporters. These changes affect average export price in opposite ways. Nevertheless, trade liberalization in the quality extended model increases consumers' welfare by more than in the benchmark model.

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 Product Quality and Firm Heterogeneity in International Trade written by Antoine Gervais and published by . This book was released on 2015 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper quantifies the separate contributions of product quality and technical efficiency in explaining variation in export outcomes across U.S. manufacturing plants. Unlike previous plant-level studies that rely on unit values, I obtain direct measures of idiosyncratic demand from price and quantity information. I find substantial across-plant heterogeneity in demand and, consistent with the quality interpretation, demand is positively correlated with advertising expenditures, wage rate and material costs. I use this variation to explain across-plant heterogeneity in export outcomes. The results show that, in addition to productivity, idiosyncratic demand are important determinant of selection into exporting and foreign sales.

Download or read book What is Firm Heterogeneity in Trade Models written by Colin Hottman and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We estimate a structural model of heterogeneous multiproduct firms to examine the sources of firm heterogeneity emphasized in the recent trade and macro literatures. Using Nielsen barcode data on prices and sales, we estimate elasticities of substitution within and between firms, and use the estimated model to recover unobserved qualities, marginal costs and markups. We find that variation in firm quality and product scope explains at least four fifths of the variation in firm sales. Most firms are well approximated by the monopolistic competition benchmark of constant markups, but the largest firms that account for most of aggregate sales depart substantially from this benchmark. Although the output of multiproduct firms is differentiated, cannibalization is quantitatively important for the largest firms. This imperfect substitutability of products within firms, and the fact that larger firms supply more products than smaller firms, implies that standard productivity measures are not independent of demand system assumptions and probably dramatically understate the relative productivity of the largest firms.

Download or read book Multi product Firms and Trade Liberalization written by Andrew B. Bernard and published by . This book was released on 2006 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a general equilibrium model of multi-product firms and analyzes their behavior during trade liberalization. Firm productivity in a given product is modeled as a combination of firm-level "ability" and firm-product-level "expertise", both of which are stochastic and unknown prior to the firm's payment of a sunk cost of entry. Higher firm-level ability raises a firm's productivity across all products, which induces a positive correlation between a firm's intensive (output per product) and extensive (number of products) margins. Trade liberalization fosters productivity growth within and across firms and in aggregate by inducing firms to shed marginally productive products and forcing the lowest-productivity firms to exit. Though exporters produce a smaller range of products after liberalization, they increase the share of products sold abroad as well as exports per product. All of these adjustments are shown to be relatively more pronounced in countries' comparative advantage industries.

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 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 Quality Polarization and International Trade written by Till F. Hollstein and published by . This book was released on 2018 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper builds a model that examines firm heterogeneity across two dimensions: productivity and quality. We show that when firms are able to choose their input quality and there exists a negative relationship between a firm's product quality and their marginal cost, this can lead to a non-unimodal distribution of quality across firms. Trade liberalization, represented by reductions in trade costs, and stronger vertical linkages, represented by an increase in the cost share of intermediate goods, shift the distribution of firms towards the modes of the distribution, which we call quality polarization. With this approach, we are able to explain empirical trade patterns relating to firm size, prices, and quality of exported goods.

Download or read book Multi product Firms and Product Quality Expansion written by Van Pham and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 Whats is Firm Heterogeneity in Trade Models written by Colin Hottman and published by . This book was released on 2014 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Differentiated Products Divided Industries Firms and the Politics of Intra Industry Trade written by Iain Guthrie Osgood and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Which firms support trade liberalization and under what circumstances? The dominant approaches to trade politics ignore two key features of modern international commerce -- firm heterogeneity in export performance and intra-industry trade -- which jointly imply that industries will be divided over bilateral trade liberalization. This dissertation examines the impact of these features on the politics of trade, exploring the preferences of firms, the attitudes of industries, and the motivations of politicians, in turn. When products are differentiated, firms which do not export generally oppose trade liberalization even in industries at a comparative advantage relative to their foreign trade partners. Not all exporting firms will be supporters of trade, however. For example, the largest exporters may oppose trade liberalization in their export markets due to increased competition from compatriot firms. It is then argued that industries are most likely to be divided where product differentiation is high and differences in competitiveness between trade partners are muted. This pattern is documented empirically in a study of US industries' attitudes toward the US-Korea and US-Australia Free Trade Agreements. Finally, a complete political economic model of trade policy determination with heterogeneous firms is developed. The changing preferences of politicians across different economic and institutional settings are explored, and comparative statics identified which show how equilibrium tariffs change with key industry features.

Download or read book The Oxford Handbook of Productivity Analysis written by Emili Grifell-Tatjé and published by Oxford University Press. This book was released on 2018-08-07 with total page 902 pages. Available in PDF, EPUB and Kindle. Book excerpt: Productivity underpins business success and national well-being and thus it is crucial to understand the factors that influence productivity growth. This volume provides a comprehensive exploration into the significance of productivity growth for business, the economy, and for social economic progress. It examines how productivity is defined, measured and implemented. It also surveys the dispersion of productivity across time and place, focusing on the productivity dynamics that either leads to a reallocation of resources that reduces dispersion and increases aggregate productivity or, conversely, allows dispersion to persist behind barriers to productivity-enhancing reallocation. A third focus is an investigation of the drivers of, or impediments to, productivity growth, some of which are organizational in nature and under management control and others of which are institutional in nature and subject to public policy intervention. The Oxford Handbook of Productivity Analysis contains contributions of distinguished productivity experts from around the world who analyze a wide range of timely issues. These issues concern purely analytical topics surrounding the measurement of productivity in various situations, beginning with the ideal situation in which all inputs and all outputs, and their prices, are observed accurately. They also include service sectors such as education in which the services provided are hard to define, much less measure, and other sectors that generate undesirable environmental externalities that are difficult to price and complicate the very definition of productivity. The issues also involve business management topics ranging from the role of business models and benchmarking to the quality of management practices, the adoption of new technologies, and possible complementarities between the two. The relationship between productivity and business performance is also explored. At a more aggregate level the issues range from the impacts of market power, incentive regulation, international trade and global value chains on productivity, to the contribution of productivity to economic development and economic welfare.

Download or read book Product Differentiation and Firm Heterogeneity in International Trade written by Gloria Yah-Shing Sheu and published by . This book was released on 2010 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book History of the 1997 Economic Census written by Michael A. Hovland and published by . This book was released on 2000 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Heterogeneous Firms and Import Quality written by Benjamin R. Mandel and published by DIANE Publishing. This book was released on 2010-11 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: A key emerging insight in international econ. is that the scope for quality differentiation can help to explain patterns in export prices at the level of products or firms. In this paper, a unified theoretical framework of firm heterogeneity in cost and quality is brought to bear on an expansive data set of U.S. import transaction prices. The higher moments of the price distribution are used to identify the scope for quality differentiation at the detailed product level. The product classification is then used to evaluate two claims in the nascent firm-level trade quality lit. First, the positive link between exporter capability and price is found to depend on the nature of the product. Second, a time series test documents firm sorting into export markets according to output quality. Illus.

Download or read book Theories of heterogeneous firms and trade written by Stephen Redding and published by . This book was released on 2010 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the recent theoretical literature on heterogeneous firms and trade, which emphasizes firm selection into international markets and reallocations of resources across firms. We discuss the empirical challenges that motivated this research and its relationship to traditional trade theories. We examine the implications of firm heterogeneity for comparative advantage, market size, aggregate trade, the welfare gains from trade, and the relationship between trade and income distribution. While a number of studies examine the endogenous response of firm productivity to trade liberalization, modeling internal firm organization and the origins of firm heterogeneity remain interesting areas of ongoing research.