Trade Liberalization and New Exporters’ Size: Theory and Evidence
This paper tests an empirical implication of Melitz (2003) in the context of falling trade costs, using the EU’s intensive liberalization phase (1993-2002) as a natural experiment. Contrary to the model’s predictions, firms that switch from non-exporting to exporting over the studied period are not concentrated in a particular size range. Our findings, based on a rich data set of French manufacturing enterprises, suggest scope for fine-tuning of the theoretical framework.
|Date of creation:||06 Oct 2006|
|Date of revision:||Oct 2006|
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- 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.
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"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.
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"Market Size, Trade, and Productivity,"
NBER Working Papers
11393, National Bureau of Economic Research, Inc.
- Ottaviano, Gianmarco & Melitz, Marc, 2008. "Market Size, Trade, and Productivity," Scholarly Articles 3229096, Harvard University Department of Economics.
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"Why Some Firms Export,"
The Review of Economics and Statistics,
MIT Press, vol. 86(2), pages 561-569, May.
- Roberto Alvarez & Ricardo López, 2005. "Exporting and performance: evidence from Chilean plants," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1384-1400, November.
- James R. Tybout, 2001. "Plant- and Firm-Level Evidence on "New" Trade Theories," NBER Working Papers 8418, National Bureau of Economic Research, Inc.
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