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Plants and Productivity in International Trade

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Author Info
Andrew B. Bernard (Tuck School of Business, Dartmouth College)
Jonathan Eaton () (Boston University)
J. Bradford Jensen (University of Maryland)
Samuel Kortum () (Boston University)

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Abstract

We reconcile international trade theory with findings of enormous plant-level heterogeneity in exporting and productivity. Our model extends basic Ricardian theory to accommodate many countries, geographic barriers, and imperfect competition. Fitting the model to bilateral trade among the United States and its 46 major trade partners, we see how well it can explain basic facts about U.S. plants (i) productivity dispersion (ii) the productivity advantage of exporters, (iii) the small fraction who export, (iv) the much larger size of exporters. We pick up all these basic qualitative features, and go quite far in matching them quantitatively. We examine counterfactuals to assess the impact of various global shifts on productivity, plant entry and exit, and labor turnover in U.S. manufacturing.

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File URL: http://www.eaber.org/intranet/documents/22/161/CUHK_Bernard_02.pdf
File Format: application/pdf
File Function: First Version, 2005
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Publisher Info
Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 161.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 53 pages
Date of creation: Apr 2000
Date of revision:
Handle: RePEc:eab:tradew:161

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Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org
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Related research
Keywords: International trade exporting productivity heterogeneity Census of Manufactures

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Find related papers by JEL classification:
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June. [Downloadable!] (restricted)
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  2. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning By Exporting Important? Micro-Dynamic Evidence From Colombia, Mexico, And Morocco," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 903-947, August. [Downloadable!] (restricted)
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