Heterogeneous Fixed Export Costs and the Division of Labor

Koji Shintaku

MPRA Paper from University Library of Munich, Germany

Abstract: We theoretically investigates that how firms decide to exports and the extent of the division of labor under heterogeneous fixed export costs. In the equilibrium, exporters and non-exporters coexists and all exporters behave as borderline firms. Exporters promote the division of labor more strongly than non-exporters. A decrease in trade costs raises the cut off export fixed costs. It expands firm size and promotes the division of labor of exporters, while it shrinks firm size and make non-exporters refrain from the division of labor. These links between the cut off fixed export costs and the division of labor of exporters and non-exporters bring a new insight for the research line of trade and heterogeneous fixed export costs

Keywords: heterogeneous fixed export costs; division of labor within firms; export decision (search for similar items in EconPapers)
JEL-codes: F1 F12 (search for similar items in EconPapers)
Date: 2015-03-20, Revised 2015-05-25
New Economics Papers: this item is included in nep-bec and nep-int
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