Firms in international trade
Andrew Bernard,
J. Jensen (jbj24@georgetown.edu),
Stephen Redding and
Peter Schott
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
Abstract:
Despite the fact that importing and exporting are extremely rare firm activities, economists generally devote little attention to the role of firms when discussing international trade. This paper summarizes key differences between trading and non-trading firms, demonstrates how these differences present a challenge to standard trade models and shows how recent “heterogeneous-firm” models of international trade address these challenges. We then make use of transaction-level U.S. trade data to introduce a number of new stylized facts about firms and trade. These facts reveal that the extensive margins of trade – that is, the number of products firms trade as well as the number of countries with which they trade – are central to understanding the well-known role of distance in dampening aggregate trade flows.
Keywords: Economic Geography; International Trade (search for similar items in EconPapers)
JEL-codes: F12 F14 O10 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2007-05
References: Add references at CitEc
Citations: View citations in EconPapers (1378)
Downloads: (external link)
http://eprints.lse.ac.uk/3682/ Open access version. (application/pdf)
Related works:
Journal Article: Firms in International Trade (2007)
Working Paper: Firms in International Trade (2007)
Working Paper: Firms in International Trade (2007)
Working Paper: Firms in International Trade (2007)
Working Paper: Firms in International Trade (2007)
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:ehl:lserod:3682
Access Statistics for this paper
More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager (lseresearchonline@lse.ac.uk).