Economics at your fingertips  

Export Growth and Factor Market Competition: Theory and Some Evidence

Julian Emami Namini, Giovanni Facchini () and Ricardo López
Additional contact information
Julian Emami Namini: Erasmus University Rotterdam

No 11-013/2, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: Empirical evidence suggests that sectoral export growth decreases exporters' survival probability, whereas this is not true for non-exporters. Models with firm heterogeneity in total factor productivity (TFP) predict the opposite. To solve this puzzle, we develop a two{factor framework where firms differ in factor intensities. Thus, export growth increases competition for the factor used intensively by exporters, eliminating some of them, while non-exportersbenefit. Interacting heterogeneity in factor shares with heterogeneity in TFP we show that factor market competition reduces the growth in average TFP brought about by trade liberalization.

Keywords: Firm dynamics; two-factor trade model; firm heterogeneity in factor input ratios (search for similar items in EconPapers)
JEL-codes: F12 F14 F16 L11 (search for similar items in EconPapers)
Date: 2011-01-20
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
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:

Access Statistics for this paper

More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().

Page updated 2020-07-09
Handle: RePEc:tin:wpaper:20110013