Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity
This paper provides evidence on the monopolistic competition model with heterogeneous firms and endogenous productivity. We show that this model has a well-defined GDP function where relative export variety enters positively, and estimate this function over 48 countries from 1980 to 2000. Average export variety to the United States increases by 3.3% per year, so it nearly doubles over these two decades. The total increase in export variety is associated with a 3.3% average productivity improvement for exporters over the two decades. Overall, the model can explain 31% of the within-country variation in productivity (or 52% for the OECD countries), but only a very small fraction of the between-country variation in productivity.
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| Format: | Journal Article biblioteca |
| Language: | EN |
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2008
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| Subjects: | Models of Trade with Imperfect Competition and Scale Economies F120, Country and Industry Studies of Trade F140, |
| Online Access: | http://hdl.handle.net/10986/5721 |
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dig-okr-1098657212021-04-23T14:02:23Z Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity Feenstra, Robert Kee, Hiau Looi Models of Trade with Imperfect Competition and Scale Economies F120 Country and Industry Studies of Trade F140 This paper provides evidence on the monopolistic competition model with heterogeneous firms and endogenous productivity. We show that this model has a well-defined GDP function where relative export variety enters positively, and estimate this function over 48 countries from 1980 to 2000. Average export variety to the United States increases by 3.3% per year, so it nearly doubles over these two decades. The total increase in export variety is associated with a 3.3% average productivity improvement for exporters over the two decades. Overall, the model can explain 31% of the within-country variation in productivity (or 52% for the OECD countries), but only a very small fraction of the between-country variation in productivity. 2012-03-30T07:34:12Z 2012-03-30T07:34:12Z 2008 Journal Article Journal of International Economics 00221996 http://hdl.handle.net/10986/5721 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article United States |
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Banco Mundial |
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Estados Unidos |
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US |
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biblioteca |
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America del Norte |
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Biblioteca del Banco Mundial |
| language |
EN |
| topic |
Models of Trade with Imperfect Competition and Scale Economies F120 Country and Industry Studies of Trade F140 Models of Trade with Imperfect Competition and Scale Economies F120 Country and Industry Studies of Trade F140 |
| spellingShingle |
Models of Trade with Imperfect Competition and Scale Economies F120 Country and Industry Studies of Trade F140 Models of Trade with Imperfect Competition and Scale Economies F120 Country and Industry Studies of Trade F140 Feenstra, Robert Kee, Hiau Looi Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity |
| description |
This paper provides evidence on the monopolistic competition model with heterogeneous firms and endogenous productivity. We show that this model has a well-defined GDP function where relative export variety enters positively, and estimate this function over 48 countries from 1980 to 2000. Average export variety to the United States increases by 3.3% per year, so it nearly doubles over these two decades. The total increase in export variety is associated with a 3.3% average productivity improvement for exporters over the two decades. Overall, the model can explain 31% of the within-country variation in productivity (or 52% for the OECD countries), but only a very small fraction of the between-country variation in productivity. |
| format |
Journal Article |
| topic_facet |
Models of Trade with Imperfect Competition and Scale Economies F120 Country and Industry Studies of Trade F140 |
| author |
Feenstra, Robert Kee, Hiau Looi |
| author_facet |
Feenstra, Robert Kee, Hiau Looi |
| author_sort |
Feenstra, Robert |
| title |
Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity |
| title_short |
Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity |
| title_full |
Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity |
| title_fullStr |
Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity |
| title_full_unstemmed |
Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity |
| title_sort |
export variety and country productivity : estimating the monopolistic competition model with endogenous productivity |
| publishDate |
2008 |
| url |
http://hdl.handle.net/10986/5721 |
| work_keys_str_mv |
AT feenstrarobert exportvarietyandcountryproductivityestimatingthemonopolisticcompetitionmodelwithendogenousproductivity AT keehiaulooi exportvarietyandcountryproductivityestimatingthemonopolisticcompetitionmodelwithendogenousproductivity |
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