Citation

Discussion Paper Details

Please find the details for DP12829 in an easy to copy and paste format below:

Full Details

Title: Firms and Economic Performance: A View from Trade

Author(s): Alessandra Bonfiglioli, Rosario Crin� and Gino Gancia

Publication Date: March 2018

Keyword(s): Firm Heterogeneity, granularity, international trade, prices, Quality, US Imports and Variety

Programme Area(s): International Macroeconomics and Finance, International Trade and Regional Economics and Macroeconomics and Growth

Abstract: This paper uses US import data to compare firms from multiple origins in a single destination. Guided by structural equations, we decompose countries' market shares into the contribution of the number of firm-products, their average attributes (quality and unit values) and reallocations among heterogeneous firms. We show that heterogeneity in attributes is important for explaining average exports and why these are higher from richer and larger countries. While we find evidence consistent with selection and misallocation, they do not seem the sole drivers of the results. In conclusion, reallocations among heterogeneous firms are important for trade, economic development and welfare.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12829

Bibliographic Reference

Bonfiglioli, A, Crin�, R and Gancia, G. 2018. 'Firms and Economic Performance: A View from Trade'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12829