Theories of heterogeneous firms and trade

Stephen Redding

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper reviews the recent theoretical literature on heterogeneous firms and trade, whichemphasizes firm selection into international markets and reallocations of resources acrossfirms. We discuss the empirical challenges that motivated this research and its relationship totraditional trade theories. We examine the implications of firm heterogeneity for comparativeadvantage, market size, aggregate trade, the welfare gains from trade, and the relationshipbetween trade and income distribution. While a number of studies examine the endogenousresponse of firm productivity to trade liberalization, modelling internal firm organization andthe origins of firm heterogeneity remain interesting areas of ongoing research.

Keywords: Heterogeneous firms; international trade; within-industry reallocation; selection into exporting (search for similar items in EconPapers)
JEL-codes: F12 F16 L22 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2010-08
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Citations: View citations in EconPapers (39)

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http://eprints.lse.ac.uk/48908/ Open access version. (application/pdf)

Related works:
Journal Article: Theories of Heterogeneous Firms and Trade (2011)
Working Paper: Theories of Heterogeneous Firms and Trade (2010)
Working Paper: Theories of Heterogeneous Firms and Trade (2010)
Working Paper: Theories of Heterogeneous Firms and Trade (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:48908

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