Learning How To Export

Paul Segerstrom and Ignat Stepanok

Scandinavian Journal of Economics, 2018, vol. 120, issue 1, 63-92

Abstract: In this paper, we present a standard quality ladders endogenous growth model with one significant new assumption: it takes time for firms to learn how to export. It is known that the welfare gains from trade liberalization implied by a large class of models like the Armington gravity model, the Krugman model, and the Melitz model are small. Our quality ladders model is consistent with a number of firm‐level stylized facts from the heterogeneous firms trade literature and is, in addition, capable of generating very large welfare gains from trade liberalization.

Date: 2018
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https://doi.org/10.1111/sjoe.12226

Related works:
Working Paper: Learning How to Export (2013)
Working Paper: Learning how to export (2012)
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