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Trade Liberalization and New Exporters’ Size: Theory and Evidence

Virginia Di Nino, Rosen Marinov, Nadia Rocha
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Virginia Di Nino, Rosen Marinov, Nadia Rocha: IUHEI, The Graduate Institute of International Studies, Geneva

Authors registered in the RePEc Author Service: Nadia Rocha, Virginia Di Nino () and Rosen Marinov ()

No 19-2006, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies

Abstract: This paper tests an empirical implication of Melitz (2003) in the context of falling trade costs, using the EU’s intensive liberalization phase (1993-2002) as a natural experiment. Contrary to the model’s predictions, firms that switch from non-exporting to exporting over the studied period are not concentrated in a particular size range. Our findings, based on a rich data set of French manufacturing enterprises, suggest scope for fine-tuning of the theoretical framework.

Keywords: Entry; Size Distribution of Firms; Intra-industry trade (search for similar items in EconPapers)
JEL-codes: F12 F14 L11 (search for similar items in EconPapers)
Pages: 8
Date: 2006-10-06, Revised 2006-10
New Economics Papers: this item is included in nep-int
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