Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86715
Authors: 
Namini, Julian Emami
Facchini, Giovanni
Lopez, Ricardo A.
Year of Publication: 
2011
Series/Report no.: 
Tinbergen Institute Discussion Paper 11-013/2
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.
Subjects: 
Firm dynamics
two-factor trade model
firm heterogeneity in factor input ratios
JEL: 
F12
F14
F16
L11
Document Type: 
Working Paper

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