Empirical Productivity Distributions and International Trade

Peter Egger, , and Sergey Nigai
Authors registered in the RePEc Author Service: Katharina Erhardt ()

No 15160, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper reassesses the question of the importance of comparative advantage in a model of international trade with heterogeneous firms where productivity is distributed nonparametrically. This assessment rests on a method of isolating empirical productivity distributions for 15 countries and 17 sectors using a combination of firm-level and macroeconomic data together with the structure of the model. In this setting, the effects of technology on trade are substantial and cannot be captured by a small set of technology parameters. On average, comparative advantage accounts for 23% of the observed variation in trade or 70\% in the absence of selection effects.

JEL-codes: F1 F10 F12 (search for similar items in EconPapers)
Date: 2020-08
New Economics Papers: this item is included in nep-cwa, nep-eff and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Empirical Productivity Distributions and International Trade (2021)
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