Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity

This paper provides evidence on the monopolistic competition model with heterogeneous firms and endogenous productivity. We show that this model has a well-defined GDP function where relative export variety enters positively, and estimate this function over 48 countries from 1980 to 2000. Average ex...

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Main Authors:	Feenstra, Robert, Kee, Hiau Looi
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Models of Trade with Imperfect Competition and Scale Economies F120 Country and Industry Studies of Trade F140
Online Access:	http://hdl.handle.net/10986/5721

id	okr-10986-5721
recordtype	oai_dc
spelling	okr-10986-57212021-04-23T14:02:23Z Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity Feenstra, Robert Kee, Hiau Looi Models of Trade with Imperfect Competition and Scale Economies F120 Country and Industry Studies of Trade F140 This paper provides evidence on the monopolistic competition model with heterogeneous firms and endogenous productivity. We show that this model has a well-defined GDP function where relative export variety enters positively, and estimate this function over 48 countries from 1980 to 2000. Average export variety to the United States increases by 3.3% per year, so it nearly doubles over these two decades. The total increase in export variety is associated with a 3.3% average productivity improvement for exporters over the two decades. Overall, the model can explain 31% of the within-country variation in productivity (or 52% for the OECD countries), but only a very small fraction of the between-country variation in productivity. 2012-03-30T07:34:12Z 2012-03-30T07:34:12Z 2008 Journal Article Journal of International Economics 00221996 http://hdl.handle.net/10986/5721 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article United States
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Models of Trade with Imperfect Competition and Scale Economies F120 Country and Industry Studies of Trade F140
spellingShingle	Models of Trade with Imperfect Competition and Scale Economies F120 Country and Industry Studies of Trade F140 Feenstra, Robert Kee, Hiau Looi Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity
geographic_facet	United States
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper provides evidence on the monopolistic competition model with heterogeneous firms and endogenous productivity. We show that this model has a well-defined GDP function where relative export variety enters positively, and estimate this function over 48 countries from 1980 to 2000. Average export variety to the United States increases by 3.3% per year, so it nearly doubles over these two decades. The total increase in export variety is associated with a 3.3% average productivity improvement for exporters over the two decades. Overall, the model can explain 31% of the within-country variation in productivity (or 52% for the OECD countries), but only a very small fraction of the between-country variation in productivity.
format	Journal Article
author	Feenstra, Robert Kee, Hiau Looi
author_facet	Feenstra, Robert Kee, Hiau Looi
author_sort	Feenstra, Robert
title	Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity
title_short	Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity
title_full	Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity
title_fullStr	Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity
title_full_unstemmed	Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity
title_sort	export variety and country productivity : estimating the monopolistic competition model with endogenous productivity
publishDate	2012
url	http://hdl.handle.net/10986/5721
_version_	1764396083627163648

Export Variety and Country Productivity : Estimating the Monopolistic Competition Model with Endogenous Productivity

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