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Granular Comparative Advantage
DOI:10.1086/712444.png)
Abstract
En 中文
Large firms play a pivotal role in international trade. We develop a multisector granular model of trade where sectors host a finite number of firms. Both aggregate and granular firm-level forces shape comparative advantage. The model is estimated using French microdata on firm domestic and export sales. We find that granularity accounts for about 20% of the sectoral variation in export intensity and is more pronounced in highly export-intensive sectors. An extension to a dynamic environment with both idiosyncratic and aggregate shocks reveals that firm dynamics plays a central role in shaping comparative advantage reversals observed in the data.
Keywords:
INTERNATIONAL-TRADE
ECONOMIES
ORIGINS
WELFARE
GAINS
FIRMS
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