Zeros, Quality and Space: Trade Theory and Trade Evidence /
Baldwin, Richard.
Zeros, Quality and Space: Trade Theory and Trade Evidence / Richard Baldwin, James Harrigan. - Cambridge, Mass. National Bureau of Economic Research 2007. - 1 online resource: illustrations (black and white); - NBER working paper series no. w13214 . - Working Paper Series (National Bureau of Economic Research) no. w13214. .
July 2007.
Bilateral, product-level data exhibit a number of strong patterns that can be used to evaluate international trade theories, notably the spatial incidence of "export zeros" (correlated with distance and importer size), and of export unit values (positively related to distance). We show that leading theoretical trade models fail to explain at least some of these facts, and propose a variant of the Melitz model that can account for all the facts. In our model, high quality firms are the most competitive, with heterogeneous quality increasing with firms' heterogeneous cost.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Zeros, Quality and Space: Trade Theory and Trade Evidence / Richard Baldwin, James Harrigan. - Cambridge, Mass. National Bureau of Economic Research 2007. - 1 online resource: illustrations (black and white); - NBER working paper series no. w13214 . - Working Paper Series (National Bureau of Economic Research) no. w13214. .
July 2007.
Bilateral, product-level data exhibit a number of strong patterns that can be used to evaluate international trade theories, notably the spatial incidence of "export zeros" (correlated with distance and importer size), and of export unit values (positively related to distance). We show that leading theoretical trade models fail to explain at least some of these facts, and propose a variant of the Melitz model that can account for all the facts. In our model, high quality firms are the most competitive, with heterogeneous quality increasing with firms' heterogeneous cost.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.