Plants and Productivity in International Trade

  title={Plants and Productivity in International Trade},
  author={ONATHAN and ATON and J. Bandovic and Radford and ENSEN},
  • ONATHAN, ATON, +2 authors ENSEN
  • Published 2004
We reconcile trade theory with plant-level export behavior, extending the Ricardian model to accommodate many countries, geographic barriers, and imperfect competition. Our model captures qualitatively basic facts about U.S. plants: (i) productivity dispersion, (ii) higher productivity among exporters, (iii) the small fraction who export, (iv) the small fraction earned from exports among exporting plants, and (v) the size advantage of exporters. Fitting the model to bilateral trade among the… CONTINUE READING
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