Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/93450 
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper No. 4630
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Why is it that exporter productivity premia (EPP) differ so widely in size? We take this question to the theory and to the data. We derive the sectoral EPP in a standard heterogeneous firms trade model and apply the insights from the model to 13 years of data for all Danish manufacturing firms. We show that a significant share of the observed variation in EPPs across sectors, and hence across countries, can be explained by the variation in productivity dispersion, trade costs and the elasticity of substitution.
Subjects: 
intra-industry trade
exporter productivity
firm-level data
heterogeneous firms
JEL: 
F12
F14
D24
O47
Document Type: 
Working Paper
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