NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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The Life-Cycle Dynamics of Exporters and Multinational Firms

Anna Gumpert, Haishi Li, Andreas Moxnes, Natalia Ramondo, Felix Tintelnot

NBER Working Paper No. 24013
Issued in November 2017, Revised in November 2019
NBER Program(s):International Trade and Investment Program

This paper studies the life-cycle dynamics of exporters and multinational enterprises (MNEs). Using rich firm-level data, we document a comprehensive set of facts on entry, exit, and growth of new exporters and new MNEs. Guided by these facts, we build a model based on the standard proximity-concentration trade-off extended to incorporate time-varying firm productivity and sunk costs of MNE entry. The calibrated version of the model goes far in matching cross-sectional and dynamic moments of the data on exporters and MNEs. We show that including the choice to become an MNE affects the predicted export dynamics after trade liberalization. The different dynamics in a model with and without MNEs hinge on the right truncation of fast-growing exporters induced by the inclusion of the MNE choice.

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Document Object Identifier (DOI): 10.3386/w24013

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