EconPapers    
Economics at your fingertips  
 

Firm-level comparative advantage

Matthieu Crozet () and Federico Trionfetti

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: We study the consequences of heterogeneity in factor intensity on firm performance. We present a standard Heckscher–Ohlin model augmented with factor intensity differences across firms within a country–industry pair. We show that for any two firms, each of whose capital intensity is, for instance, one percent above (below) its respective country–industry average, the relative marginal cost of the firm in the capital-intensive industry of the capital-abundant country is lower (higher) than that of the other firm. Our empirical analysis, conducted using data for a large panel of European firms, supports this prediction. These results provide a novel approach to the verification of the Heckscher–Ohlin theory and new evidence on its validity.

Keywords: Factor intensity; Firm heterogeneity; Test of trade theories (search for similar items in EconPapers)
Date: 2013
Note: View the original document on HAL open archive server: https://hal-amu.archives-ouvertes.fr/hal-01499627
References: Add references at CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed

Published in Journal of International Economics, Elsevier, 2013, 91 (2), pp.321-328. ⟨10.1016/j.jinteco.2013.09.002⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Firm-level comparative advantage (2013) Downloads
Working Paper: Firm-level comparative advantage (2013)
Working Paper: Firm-level comparative advantage (2013)
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:hal:cesptp:hal-01499627

DOI: 10.1016/j.jinteco.2013.09.002

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2022-05-18
Handle: RePEc:hal:cesptp:hal-01499627