Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/123225 
Erscheinungsjahr: 
2015
Schriftenreihe/Nr.: 
CESifo Working Paper No. 5583
Verlag: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Zusammenfassung: 
Recent trade theory in the Krugman (1980) tradition predicts that countries with larger market size enjoy higher levels of total factor productivity (TFP) – and equivalently of real per capita income or welfare – as a smaller fraction of spending on inputs is affected by trade costs. However, in cross-country data, there is no such positive correlation between market size and TFP. We argue that models with heterogeneous firms and selection help to reconcile theory and data. While they do feature a home market effect – larger countries have an over-proportionate share of firms – and, therefore, have more input varieties available, the average productivity of firms is lower as greater market size protects inefficient firms. To reconcile theory with data, we show that a lower degree of external economies of scale (EoS) is needed than what is implicitly assumed in the usual formulation of aggregate CES production functions. Whether trade liberalization triggers convergence or divergence of TFP also depends on the strength of EoS.
Schlagwörter: 
trade
monopolistic competition
heterogeneous firms
total factor productivity
scale effects
home market effect
JEL: 
F12
R12
Dokumentart: 
Working Paper
Erscheint in der Sammlung:

Datei(en):
Datei
Größe





Publikationen in EconStor sind urheberrechtlich geschützt.