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Firm-productivity and export under non-constant marginal costs

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  • Arijit Mukherjee

    (Nottingham University Business School)

Abstract

Recent theoretical research shows that exporters are more productive than non-exporters. We show that this result holds almost trivially for the case of a constant marginal cost of production, as mainly assumed in the literature, but it may not hold true if the marginal cost is not constant. Our result provides a simple explanation for recent empirical evidence showing exporters can be less productive than non-exporters.

Suggested Citation

  • Arijit Mukherjee, 2017. "Firm-productivity and export under non-constant marginal costs," Economics Bulletin, AccessEcon, vol. 37(2), pages 911-917.
    • Handle: RePEc:ebl:ecbull:eb-16-00152
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    References listed on IDEAS

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    More about this item

    Keywords

    Export; Non-constant marginal cost of production; Productivity;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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