Pure Exporter: Theory and Evidence

Lu Jiangyong, Yi Lu and Zhigang Tao

MPRA Paper from University Library of Munich, Germany

Abstract: This paper provides the first evidence about pure exporters (i.e., firms exporting all of their output to the foreign market) -- a phenomenon overlooked and cannot be explained in the existing literature. It then offers a generalized model of Melitz (2003) for examining the existence and behavior of pure exporters. In particular, pure exporters arise when the export market is sufficiently large -- a situation more likely to hold in developing countries as opposed to large developed countries; and their productivity levels are above those of non-exporters, but below those of firms having both domestic sales and export. These theoretical predictions are borne out in a data of Chinese manufacturing firms for the period of 1998-2005.

Keywords: Pure Exporter; Firm Heterogeneity; Exporting Behavior (search for similar items in EconPapers)
JEL-codes: D24 F12 F23 (search for similar items in EconPapers)
Date: 2011-03
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:29966

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