Firm level export decisions: The role of information cost
Costs necessary to conform with rules and regulations governing market access (i.e. compliance costs) are uncertain prior to export or collection of information which is not cost free for an individual firm. In this paper, we extend the heterogeneous firm model of Melitz to analyze how an individual firm may reduce or eliminate the uncertainty of compliance costs by paying for the information cost prior to making decisions to export. Our model indicates that in the presence of uncertain compliance costs and non-zero information cost, average profits and productivity differences between exporting and non-exporting firms are reduced.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Thornsbury, Suzanne & Roberts, Donna & Orden, David, 2004. "Measurement and Political Economy of Disputed Technical Regulations," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(03), December.
- James E. Anderson & Eric van Wincoop, 2004.
NBER Working Papers
10480, National Bureau of Economic Research, Inc.
- Mark J. Melitz, 2002.
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity,"
NBER Working Papers
8881, National Bureau of Economic Research, Inc.
- Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
- Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:487-490. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.