Theories of heterogeneous firms and trade

Redding, Stephen (2010) Theories of heterogeneous firms and trade. CEP Discussion Papers (CEPDP0994). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

This paper reviews the recent theoretical literature on heterogeneous firms and trade, whichemphasizes firm selection into international markets and reallocations of resources acrossfirms. We discuss the empirical challenges that motivated this research and its relationship totraditional trade theories. We examine the implications of firm heterogeneity for comparativeadvantage, market size, aggregate trade, the welfare gains from trade, and the relationshipbetween trade and income distribution. While a number of studies examine the endogenousresponse of firm productivity to trade liberalization, modelling internal firm organization andthe origins of firm heterogeneity remain interesting areas of ongoing research.

Item Type:	Monograph (Report)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2010 The Author
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HD Industries. Land use. Labor
JEL classification:	F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration; Conglomerates; Subsidiaries
Date Deposited:	28 Feb 2013 15:21
Last Modified:	12 Dec 2024 05:53
URI:	http://eprints.lse.ac.uk/id/eprint/48908

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