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
More papers in 2004 Meeting Papers from Society for Economic Dynamics Address: Society for Economic Dynamics Anne Stubing CV Starr Center for Applied Economics 269 Mercer Street, Room 303 New York University New York, NY 10003 Contact information at EDIRC. Series data maintained by Christian Zimmermann ().
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