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Granular Comparative Advantage

delete2021-03-01
delete54
PRE
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C
Cécile Gaubert *
O
Oleg Itskhoki
DOI:10.1086/712444delete
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Abstract

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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Journal of Political Economy cover
Journal of Political Economy
IF:
6.3
Papers:
2.6K
Citations:
3.2W

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U
University of California Berkeley
Scholars:
3.5W
Papers: 2.8W
Citations: 11.3W
University of California System cover
University of California System
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Papers: 33.7W
Citations: 6.6K