Granular Comparative Advantage
Bibliographic Data
| ID | 10179797 |
|---|---|
| Authors | Cécile Gaubert (0000-0001-7391-2623, University of California, Berkeley), Oleg Itskhoki (0000-0001-6903-7942, Princeton University) |
| Year | 2020 |
| Volume | 129 |
| Issue | 3 |
| Pages | 871-939 |
| Publication date | 2020-11-02 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/712444 |
| OpenAlex | W3163049845 |
| Language | EN |
| Citations received | 23 |
| References cited | 30 |
Large firms play a pivotal role in international trade, shaping the export patterns of countries. We propose and quantify a granular multi-sector model of trade, which combines fundamental comparative advantage across sectors with granular comparative advantage embodied in outstanding individual firms. We develop an SMM-based estimation procedure, which takes full account of the general equilibrium of the model, to jointly estimate these fundamental and granular forces using French micro-data with information on firm domestic and export sales across manufacturing industries. We find that granularity accounts for about 20% of the variation in realized export intensity across sectors, and is more pronounced in the most export-intensive sectors. In turn, idiosyncratic firm dynamics accounts for a large share of the evolution of a country's comparative advantage over time. Governments face strong incentives to target trade policy at large individual foreign exporters, and to use lenient antitrust regulation at home to substitute for beggar-thy-neighbor trade policy
Business · Comparative advantage · Economics · Granularity · Incentive · Industrial organization · International economics · International trade · Microeconomics · Revealed comparative advantage · Computer Science · Firm Innovation and Growth · Global Trade and Competitiveness · Global trade and economics
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Heterogeneous trade elasticity and managerial skills
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Heterogeneous Trade Elasticity and Managerial Skills
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Export Granularity and How It Shapes Comparative Advantage and Trade Balance in Indian Manufacturing
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Global shocks and the dynamics of EU countries' specialisation
Firm‐Level Concentration of Chinese Exports in Individual Markets
Trade, Power, and Welfare
Regional integration and city-level energy efficiency
Big hits in export growth
Returns to Scale, Productivity, Measurement, and Trends in U.S. Manufacturing Misallocation
Productivity, Place, and Plants
Granular Instrumental Variables
Foreign Shocks as Granular Fluctuations
The Origins of Firm Heterogeneity
Bureaucratic transfers and industrial structure changes in China
Lobbying for Globalisation
Power Laws in Economics and Finance
Technology, Geography, and Trade
Trade Costs
Globalization and the Gains From Variety
The Fall of the Labor Share and the Rise of Superstar Firms
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Rank − 1 / 2
Export Superstars
Why Do More Open Economies Have Bigger Governments
Country Size, International Trade, and Aggregate Fluctuations in Granular Economies
Capabilities, Wealth, and Trade
Betting On Exports
| Unique citing works | 23 |
|---|---|
| Citations per year | 5,75 |
| Citation span | 2022 - 2026 (5) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 23 |