TY  - JOUR
AU  - Kee,Hiau Looi
AU  - Krishna,Kala
TI  - Firm Level Heterogeneous Productivity and Demand Shocks: Evidence from Bangladesh
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13698
PY  - 2007
Y2  - December 2007
UR  - http://www.nber.org/papers/w13698
L1  - http://www.nber.org/papers/w13698.pdf
N1  - Author contact info:
Hiau Looi Kee
The World Bank
Development Research Group - Trade
1818 H Street, NW (MSN MC3-303)
Washington, DC 20433
E-Mail: hlkee@worldbank.org

Kala Krishna
Department of Economics
523 Kern Graduate Building
The Pennsylvania State University
University Park, PA 16802
Tel: 814/865-1106
Fax: 814/863-4775
E-Mail: kmk4@psu.edu
AB  - This paper looks at the predictions of a standard heterogeneous firm model regarding the exports of firms across markets in response to a particular trade policy "experiment" and compares these predictions to the data. A unique feature of our data is that it has information on the exports of the same firm to different markets which allows us to look for a new set of predictions of such models. We argue that while certain predictions seem consistent with the data, others are not. We then describe the patterns found in the data and argue that firm and market specific demand shocks help explain a number of these anomalies. These parsimoniously capture factors, like business contacts or networks, or even fashion shocks, that make buyers more attracted to one firm rather than another in a particular market.
ER  -