Economies of scale and the size of exporters

Roc Armenter, Miklós Koren

    Research output: Contribution to journalArticlepeer-review

    Abstract (may include machine translation)

    How important are economies of scale in exporting? We argue that firm size cannot be the main determinant of export status if a model is to be consistent with the observed number and size of exporters. Instead, we need a lot of variation independent of firm size to reconcile the model with the data. We show that the augmented model also has markedly different implications regarding the margin of adjustment in the event of a trade liberalization: most of the adjustment is through the intensive margin and productivity gains due to reallocation are halved.

    Original languageEnglish
    Pages (from-to)482-511
    Number of pages30
    JournalJournal of the European Economic Association
    Volume13
    Issue number3
    DOIs
    StatePublished - 1 Jun 2015

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