Comparative advantage and heterogeneous firms
By: Andrew B. Bernard, Stephen Redding, Peter K. Schott.
Contributors: Redding, Stephen.; Schott, Peter K.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10668; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10668.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper presents a model of international trade that features heterogeneous firms, relative endowment differences across countries, and consumer taste for variety.  The paper demonstrates that firm reactions to trade liberalization generate endogenous Ricardian productivity responses at the industry level that magnify countries' comparative advantage.  Focusing on the wide range of firm-level reactions to falling trade costs, the model also shows that, as trade costs fall, firms in comparative advantage industries are more likely to export, that relative firm size and the relative number of firms increases more in comparative advantage industries and that job turnover is higher in comparative advantage industries than in comparative disadvantage industries"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/11/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.