EconPapers    
Economics at your fingertips  
 

Economies of Scale and the Size of Exporters

Roc Armenter () and Miklós Koren

No 7, CeFiG Working Papers from Center for Firms in the Global Economy

Abstract: Exporters are few---less than one fifth among U.S. manufacturing firms---and are larger than non-exporting firms---about 4-5 times more total sales per firm. These facts are often cited as support for models with economies of scale and firm heterogeneity as in Melitz (2003). We find that the basic Melitz model cannot simultaneously match the size and share of exporters given the observed distribution of total sales. Instead exporters are expected to be between 90 and 100 times larger than non-exporters. It is easy to reconcile the model with the data. However, a lot of variation independent of firm size is needed to do so. This suggests that economies of scale play only a minor role in determining the export status of a firm. We show that the augmented model also has markedly different implications in the event of a trade liberalization. Most of the adjustment is through the intensive margin; and productivity gains due to reallocation are halved.

New Economics Papers: this item is included in nep-int
Date: 2009-03-12, Revised 2009-03-12
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (30) Track citations by RSS feed

Downloads: (external link)
http://resources.cefig.eu/papers/exporter_size.pdf Economies of Scale and the Size of Exporters - [pdf] (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to resources.cefig.eu:80

Related works:
Journal Article: ECONOMIES OF SCALE AND THE SIZE OF EXPORTERS (2015) Downloads
Working Paper: Economies of scale and the size of exporters (2009) Downloads
Working Paper: Economies of Scale and the Size of Exporters (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cfg:cfigwp:7

Access Statistics for this paper

More papers in CeFiG Working Papers from Center for Firms in the Global Economy Contact information at EDIRC.
Bibliographic data for series maintained by Miklós Koren (). This e-mail address is bad, please contact .

 
Page updated 2018-09-20
Handle: RePEc:cfg:cfigwp:7