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Firm-productivity and export under non-constant marginal costs

Arijit Mukherjee ()
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Arijit Mukherjee: Nottingham University Business School

Economics Bulletin, 2017, vol. 37, issue 2, 911-917

Abstract: Recent theoretical research shows that exporters are more productive than non-exporters. We show that this result holds almost trivially for the case of a constant marginal cost of production, as mainly assumed in the literature, but it may not hold true if the marginal cost is not constant. Our result provides a simple explanation for recent empirical evidence showing exporters can be less productive than non-exporters.

Keywords: Export; Non-constant marginal cost of production; Productivity (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2017-05-01
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