Ricardian selection

• 成果类型: Article
• 署名作者: Finicelli, Andrea; Pagano, Patrizio; Sbracia, Massimo
• 署名单位: European Central Bank; Bank of Italy
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2012.04.005
• 发表日期: 2013
• 页码: 96-109
• 关键词: Eaton-Kortum model; Selection effect; international competition

摘要

We analyze the foundations of the relationship between trade and average productivity in the Ricardian model. Under broad assumptions about the autarky distributions of industry productivities, trade openness raises average productivity. This is due to the selection effect of international competition - driven by comparative advantage - which makes some high- and many low-productivity industries exit the market We derive a model-based measure of this effect that requires only production and trade data. For a sample of 41 countries, we find that Ricardian selection raised average productivity in the manufacturing sector by 11% above the autarky level in 2005 (6% in 1985), with a neat positive time trend and large cross-country differences. (C) 2012 Elsevier B.V. All rights reserved.