Firm-destination heterogeneity and the distribution of export intensity

Defever, Fabrice and Riaño, Alejandro (2022) Firm-destination heterogeneity and the distribution of export intensity. Economics Letters, 219. ISSN 0165-1765

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Abstract

We derive closed-form expressions for the distribution of export intensity when firm-destination-specific revenue shifters are distributed gamma, Fréchet and Weibull in a two-country model of trade with isoelastic demand. We estimate the parameters governing the distribution of export intensity for each type of revenue shifter across 72 countries. We compare the model's fit to the distribution of export intensity across countries when revenue shifters are distributed lognormal, gamma and Fréchet/Weibull. While lognormal slightly outperforms the other distributions, all revenue shifters considered reproduce salient features of export intensity distributions within and between countries quite successfully.

Item Type:	Article
Official URL:	https://www.sciencedirect.com/journal/economics-le...
Additional Information:	© 2022 The Authors
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance
JEL classification:	F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods: General > C12 - Hypothesis Testing O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O50 - General
Date Deposited:	15 Sep 2022 11:21
Last Modified:	08 Apr 2024 03:42
URI:	http://eprints.lse.ac.uk/id/eprint/116625

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