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The Empirics of Firm Heterogeneity and International Trade

  • Andrew B. Bernard

    ()

    (Tuck School of Business, Dartmouth College, Hanover, New Hampshire 03755
    National Bureau of Economic Research, Cambridge, Massachusetts 02138)

  • J. Bradford Jensen

    ()

    ( McDonough School of Business, Georgetown University, Washington, DC 20057
    National Bureau of Economic Research, Cambridge, Massachusetts 02138
    Peterson Institute for International Economics, Washington, DC 20036)

  • Stephen J. Redding

    ()

    (Department of Economics and Woodrow Wilson School, Princeton University, Princeton, New Jersey 08544
    National Bureau of Economic Research, Cambridge, Massachusetts 02138
    Centre for Economic Policy Research, London EC1V 3PZ, United Kingdom)

  • Peter K. Schott

    ()

    ( Yale School of Management, Yale University, New Haven, Connecticut 06520
    National Bureau of Economic Research, Cambridge, Massachusetts 02138)

This article reviews the empirical evidence on firm heterogeneity in international trade. A first wave of empirical findings from microdata on plants and firms proposed challenges for existing models of international trade and inspired the development of new theories emphasizing firm heterogeneity. Subsequent empirical research has examined additional predictions of these theories and explored other dimensions of the data not originally captured by them. These other dimensions include multiproduct firms, offshoring, intrafirm trade and firm export market dynamics.

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Article provided by Annual Reviews in its journal Annual Review of Economics.

Volume (Year): 4 (2012)
Issue (Month): 1 (07)
Pages: 283-313

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Handle: RePEc:anr:reveco:v:4:y:2012:p:283-313
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