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Firm-destination heterogeneity and the distribution of export intensity

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  • Defever, Fabrice
  • Riaño, Alejandro

Abstract

We derive closed-form expressions for the distribution of export intensity when firm-destination-specific revenue shifters are distributed gamma, Fréchet and Weibull in a two-country model of trade with isoelastic demand. We estimate the parameters governing the distribution of export intensity for each type of revenue shifter across 72 countries. We compare the model's fit to the distribution of export intensity across countries when revenue shifters are distributed lognormal, gamma and Fréchet/Weibull. While lognormal slightly outperforms the other distributions, all revenue shifters considered reproduce salient features of export intensity distributions within and between countries quite successfully.

Suggested Citation

  • Defever, Fabrice & Riaño, Alejandro, 2022. "Firm-destination heterogeneity and the distribution of export intensity," LSE Research Online Documents on Economics 116625, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:116625
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    File URL: http://eprints.lse.ac.uk/116625/
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    References listed on IDEAS

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    More about this item

    Keywords

    export intensity distribution; exports; firm heterogeneity;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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