Learning How to Export

Paul Segerstrom and Ignat Stepanok

No 727, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: In this paper, we present a standard quality ladders endogenous growth model with one significant new assumption, that it takes time for firms to learn how to export. We show that this model without Melitz-type assumptions can account for all the evidence that the Melitz (2003) model was designed to explain plus much evidence that the Melitz model can not account for. In particular, consistent with the empirical evidence, we find that trade liberalization leads to a higher exit rate of firms, that exporters charge higher prices for their products as well as higher markups, and that many large firms do not export.

Keywords: trade liberalization; heterogenous firms; quality ladders; endogenous growth (search for similar items in EconPapers)
JEL-codes: F12 F13 F43 O31 O41 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2010-04-12, Revised 2013-09-16
New Economics Papers: this item is included in nep-ino and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://swopec.hhs.se/hastef/papers/hastef0727.pdf (application/pdf)

Related works:
Journal Article: Learning How To Export (2018)
Working Paper: Learning how to export (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0727

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