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On Export Premia

Kozo Kiyota, Toshiyuki Matsuura () and Lionel Nesta ()

No 2019-10, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis

Abstract: This paper formally shows that the magnitude of the export premium, the fact that exporters are more productive than non-exporters, conveys little economic information on the underlying selection mechanism into export markets for two major reasons. First, variations in export premia may reflect differences in product and factor market imperfections. Second, under the assumption that the true productivity of firms follows a log-normal distribution, we show that a large export premium does not necessarily entail high export costs. This is due to the non-monotonic relationship between the export productivity cutoff point and the corresponding export premium.

Keywords: Export premium; Productivity; Normal distribution; Firm heterogeneity (search for similar items in EconPapers)
JEL-codes: D2 D3 F1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff and nep-int
Date: 2019-02, Revised 2019-03
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http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2019-10.pdf Revised version, 2019-03 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2019-10

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