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
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)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-16-00152
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