Do trade policy differences induce sorting? Theory and evidence from Bangladeshi apparel exporters

• 成果类型: Article
• 署名作者: Demidova, Svetlana; Kee, Hiau Looi; Krishna, Kala
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; McMaster University; The World Bank; National Bureau of Economic Research
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2011.12.008
• 发表日期: 2012
• 页码: 247-261
• 关键词: Rules of origin; firm heterogeneity; demand shocks

摘要

This paper provides a new heterogeneous firm model for trade where firms differ in their productivity and experience different market demand shocks. The model incorporates the variations in trade policy, trade preferences, and the rules of origin needed to obtain them that are faced by Bangladeshi garment exporters to the US and EU. We estimate firm's productivity using an extension of the Olley Pakes procedure that accounts for the biases arising from both demand shocks and productivity being unobserved. Predictions of the model are then tested non-parametrically and are shown to be supported empirically. (C) 2011 Elsevier B.V. All rights reserved.