NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Plants and Productivity in International Trade

Andrew B. Bernard, Jonathan Eaton, J. Bradford Jenson, Samuel Kortum

NBER Working Paper No. 7688
Issued in May 2000
NBER Program(s):   IO   ITI   PR

We reconcile international trade theory with findings of enormous plant-level heterogeneity in exporting and productivity. Our model extends basic Ricardian theory to accommodate many countries, geographic barriers, and imperfect competition. Fitting the model to bilateral trade among the United States and its 46 major trade partners, we see how well it can explain basic facts about U.S. plants: (i) productivity dispersion, (ii) the productivity advantage of exporters, (iii) the small fraction who export, (iv) the small fraction of revenues from exporting among those that do, and (v) the much larger size of exporters. We pick up all these basic qualitative features, and go quite far in matching them quantitatively. We examine counterfactuals to assess the impact of various global shifts on productivity, plant entry and exit, and labor turnover in U.S. manufacturing.

download in pdf format
   (1704 K)

email paper

This paper is available as PDF (1704 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w7688

Published: Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2003. "Plants and Productivity in International Trade," American Economic Review, American Economic Association, vol. 93(4), pages 1268-1290, September. citation courtesy of

Users who downloaded this paper also downloaded these:
Bernard, Jensen, Redding, and Schott w13054 Firms in International Trade
Bernard and Jensen w7135 Exporting and Productivity
Melitz w8881 The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Keller and Yeaple w9504 Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence from the United States
Helpman, Melitz, and Yeaple w9439 Export versus FDI
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us