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Heterogeneous firms and trade

Melitz, Marc J. and Redding, Stephen J. (2012) Heterogeneous firms and trade. CEP Discussion Papers (CEPDP1183). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

This paper reviews the new approach to international trade based on firm heterogeneity in differentiated product markets. This approach explains a variety of features exhibited in disaggregated trade data, including the higher productivity of exporters relative to non-exporters, within-industry reallocations of resources following trade liberalization, and patterns of trade participation across firms and destination markets. Accounting for these empirical patterns reveals new mechanisms through which the aggregate economy is affected by trade liberalization, including endogenous increases in average industry and firm productivity.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2012 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HF Commerce
JEL classification: F - International Economics > F1 - Trade > F10 - General
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
Date Deposited: 01 Mar 2013 13:56
Last Modified: 13 Sep 2024 20:22
URI: http://eprints.lse.ac.uk/id/eprint/48928

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