Where do firms export, how much, and why?
|Title:||Where do firms export, how much, and why?||Authors:||Lawless, Martina
|Permanent link:||http://hdl.handle.net/10197/2063||Date:||Apr-2008||Abstract:||The empirical finding that exporting firms are more productive on average than non-exporters has provoked a large theoretical literature based on models such as Melitz (2003), where more productive firms are more likely to overcome costs associated with trade. This paper provides a systematic empirical assessment of the Melitz framework using a unique Irish dataset that includes information on destinations and firm characteristics such as productivity. We find a number of interesting deviations from the model’s predictions including a high degree of unpredictable idiosyncratic participation in export markets by firms, a relatively weak positive correlation between the extent of export participation and export sales, and a limited role for productivity in explaining firm exporting behavior. We illustrate the effect of firm heterogeneity on gravity regressions of aggregate trade flows and show how past exporting to a particular market has a strong impact on the current probability of exporting there.||Funding Details:||Not applicable||Type of material:||Conference Publication||Publisher:||Irish Economic Association||Copyright (published version):||2008, The Irish Economic Association||Subject LCSH:||Exports--Ireland
Export trading companies--Ireland
|Language:||en||Status of Item:||Not peer reviewed||Conference Details:||22nd Annual Conference of the Irish Economic Association, Westport, Co. Mayo, 25-27 April, 2008|
|Appears in Collections:||Economics Research Collection|
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