Skip to main content

Research Repository

Advanced Search

A model of firm heterogeneity in factor intensities and international trade

Emami Namini, Julian; Facchini, Giovanni; L�pez, Ricardo

Authors

Julian Emami Namini

Ricardo L�pez



Abstract

Empirical evidence suggests that exporters – besides being more productive – are significantly more skilled labor intensive than non–exporters. In a setting which captures both these features, we show that the firm selection induced by trade liberalization works along two dimensions. First, export growth increases competition for skilled labor. This leads to the exit of some of the skilled labor intensive firms, while benefitting unskilled labor intensive ones. Second, within the group of firms with the same factor intensities, the reallocation of factors is towards the exporters. We show that the increased competition for skilled labor dampens the positive effect of trade liberalization on sector–wide TFP and real income.

Citation

Emami Namini, J., Facchini, G., & López, R. (2015). A model of firm heterogeneity in factor intensities and international trade. Canadian Journal of Economics / Revue Canadienne d'Économique, 48(4), 1456-1480. https://doi.org/10.1111/caje.12150

Journal Article Type Article
Acceptance Date Apr 14, 2014
Online Publication Date May 26, 2016
Publication Date 2015-11
Deposit Date May 10, 2016
Publicly Available Date Mar 29, 2024
Journal Canadian Journal of Economics
Print ISSN 0008-4085
Electronic ISSN 1540-5982
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 48
Issue 4
Pages 1456-1480
DOI https://doi.org/10.1111/caje.12150
Keywords Firm dynamics, two–factor trade model, firm heterogeneity in factor intensities
Public URL https://nottingham-repository.worktribe.com/output/981253
Publisher URL https://onlinelibrary.wiley.com/doi/abs/10.1111/caje.12150
Additional Information This is the peer reviewed version of the following article: Emami Namini, J., Facchini, G. and López, R. A. (2015), A model of firm heterogeneity in factor intensities and international trade. Canadian Journal of Economics/Revue canadienne d'économique, 48: 1456–1480, which has been published in final form at https://onlinelibrary.wiley.com/doi/abs/10.1111/caje.12150. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Files





You might also like



Downloadable Citations