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Export Decisions and International Business Cycles

Author

Listed:
  • Horag Choi
  • George Alessandria

Abstract

Using 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

Suggested Citation

  • Horag Choi & George Alessandria, 2004. "Export Decisions and International Business Cycles," 2004 Meeting Papers 54, Society for Economic Dynamics.
  • Handle: RePEc:red:sed004:54
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    Cited by:

    1. Fabio Ghironi & Marc J. Melitz, 2005. "International Trade and Macroeconomic Dynamics with Heterogeneous Firms," The Quarterly Journal of Economics, Oxford University Press, vol. 120(3), pages 865-915.
    2. Timothy J. Kehoe & Kim J. Ruhl, 2013. "How Important Is the New Goods Margin in International Trade?," Journal of Political Economy, University of Chicago Press, vol. 121(2), pages 358-392.
    3. Daniel Farhat, 2010. "Capital Accumulation, Non-traded Goods and International Macroeconomic Dynamics with Heterogeneous Firms," Working Papers 1002, University of Otago, Department of Economics, revised May 2010.

    More about this item

    Keywords

    Export Decisions; Firm Dynamics; Business Cycles;

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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