The ABCs of Firm Heterogeneity When Firms Sort into Markets: The Case of Exporters

• 成果类型: Article
• 署名作者: Blum, Bernardo S.; Claro, Sebastian; Horstmann, Ignatius; Rivers, David A.
• 署名单位: University of Toronto; Universidad de los Andes (Colombia); Western University (University of Western Ontario)
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/727289
• 发表日期: 2024
• 页码: 1162-1208
• 关键词: trade liberalization; PRODUCTIVITY; QUALITY; markups; prices; DYNAMICS; COSTS; size; performance; selection

摘要

We develop a novel methodology for disentangling the demand and cost drivers of firm heterogeneity when firms sort themselves into different markets, and we apply it to export status differences. Our methodology results in joint estimates of firm-level productivity and of markups in every market, without imposing functional form restrictions on demand. We find that exporters, relative to nonexporters, (i) have flatter domestic demand curves-thicker domestic markets-and (ii) have higher demand conditional on productivity. Finally, (iii) these demand advantages translate to foreign markets, thereby leading to export status differences.