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Firms in international trade

Federico Diez, Jesse Mora () and Alan Spearot
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Jesse Mora: Occidental College

No 16-25, Working Papers from Federal Reserve Bank of Boston

Abstract: Firms play a critical role in the global economy. In this paper, we survey the behavior of firms in the international economy, both in theory and in the data. We first summarize the key empirical facts that motivate the study of firms in trade. Then, we detail recent theoretical developments on the micro-foundations of firm behavior in an international context, focusing on how firms select into exporting, and how firms respond to international shocks. Finally, we turn to a “real world,” empirically focused view of exporting, beginning with the growth dynamics of firms expanding to global markets, and then addressing the critical financing decisions firms make when engaging in international commerce. We conclude with directions for future research.

Keywords: firm heterogeneity; international trade; exporters (search for similar items in EconPapers)
JEL-codes: F10 F12 F14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-int
Date: 2016-12-01
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