Export Decisions and International Business Cycles
AbstractUsing firm level data, Bernard and Jensen (1995, 1999, 2001) find that exporters are bigger and more productive than non-exporters. These studies also find that the identity of exporting firms changes over time and that fixed entry and participation costs influence firm's decision to enter and exit export markets. This paper develops a model with firm level heterogeneity and export dynamics to study the propagation of international business cycles. We find that the export decision of firms lead to greater comovement in economic activity across countries and offers a potential resolution to both the consumption correlations and international comovements puzzles
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Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number 54.
Date of creation: 2004
Date of revision:
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Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
Web page: http://www.EconomicDynamics.org/society.htm
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Export Decisions; Firm Dynamics; Business Cycles;
Other versions of this item:
- Horag Choi & George Alessandria, 2004. "Export Decisions and International Business Cycles," Econometric Society 2004 North American Summer Meetings 570, Econometric Society.
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
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