Do non‐exporters lose from lower trade costs?

Autor:	Facundo Piguillem, Loris Rubini
Rok vydání:	2021
Předmět:	0502 economics and business 05 social sciences Geography Planning and Development Economics Openness to experience Monetary economics 050207 economics Development Trade cost Discount points Productivity 050205 econometrics
Zdroj:	Review of International Economics. 29:1161-1185
ISSN:	1467-9396 0965-7576
DOI:	10.1111/roie.12540
Popis:	We study the reaction of non‐exporters to openness. While static models suggest non‐exporters lose from openness, dynamic ones where firms can innovate allow for gains from internalizing future exports. Developing a tractable model with productivity choices where both effects are present, we show analytically that the former effect dominates for small non‐exporters, while the latter dominates for large ones. Calibrating to US data, 59% of non‐exporters gain with openness, and the average non‐exporter growth rate increases by 0.02% per point drop in trade costs.
Databáze:	OpenAIRE
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