TY - JOUR
T1 - Plants and productivity in international trade
AU - Bernard, Andrew B.
AU - Eaton, Jonathan
AU - Jensen, J. Bradford
AU - Kortum, Samuel
PY - 2003/9
Y1 - 2003/9
N2 - We reconcile trade theory with plant-level export behavior, extending the Ricardian model to accommodate many countries, geographic barriers, and imperfect competition. Our model captures qualitatively basic facts about U.S. plants: (i) productivity dispersion, (ii) higher productivity among exporters, (iii) the small fraction who export, (iv) the small fraction earned from exports among exporting plants, and (v) the size advantage of exporters. Fitting the model to bilateral trade among the United States and 46 major trade partners, we examine the impact of globalization and dollar appreciation on productivity, plant entry and exit, and labor turnover in U.S. manufacturing.
AB - We reconcile trade theory with plant-level export behavior, extending the Ricardian model to accommodate many countries, geographic barriers, and imperfect competition. Our model captures qualitatively basic facts about U.S. plants: (i) productivity dispersion, (ii) higher productivity among exporters, (iii) the small fraction who export, (iv) the small fraction earned from exports among exporting plants, and (v) the size advantage of exporters. Fitting the model to bilateral trade among the United States and 46 major trade partners, we examine the impact of globalization and dollar appreciation on productivity, plant entry and exit, and labor turnover in U.S. manufacturing.
UR - http://www.scopus.com/inward/record.url?scp=0041715941&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0041715941&partnerID=8YFLogxK
U2 - 10.1257/000282803769206296
DO - 10.1257/000282803769206296
M3 - Article
AN - SCOPUS:0041715941
SN - 0002-8282
VL - 93
SP - 1268
EP - 1290
JO - American Economic Review
JF - American Economic Review
IS - 4
ER -