Decomposing Firm-Level Sales variation

Jakob Roland Munch; Daniel Xuyen Nguyen

doi:10.1016/j.jebo.2014.06.012

Decomposing Firm-Level Sales variation

10 Citationer (Scopus)

Abstract

Recently, much of the trade literature has been focused on using firm-specific productivity to explain export heterogeneity. This study provides evidence for the importance of incorporating firm-destination-specific effects such as demand shocks in theories of exporter heterogeneity. Our study estimates the proportion of firm-level sales variation within a product-destination market that can be explained by firm-specific effects such as productivity. We use a highly detailed dataset comprising firm-product-destination-specific exports and correct for truncation as modeled by recent trade theories. We find that the contribution of firm-specific effects varies greatly across products and that it is 45% for the median product. That is, within-destination sales variation is primarily explained by firm-destination-specific heterogeneity for the majority of products.

Originalsprog	Engelsk
Tidsskrift	Journal of Economic Behavior & Organization
Vol/bind	106
Sider (fra-til)	317–334
ISSN	0167-2681
DOI	https://doi.org/10.1016/j.jebo.2014.06.012
Status	Udgivet - okt. 2014

Adgang til dokumentet

10.1016/j.jebo.2014.06.012

Citationsformater

@article{9593b69cc59249cca83356f41d8ef697,

title = "Decomposing Firm-Level Sales variation",

abstract = "Recently, much of the trade literature has been focused on using firm-specific productivity to explain export heterogeneity. This study provides evidence for the importance of incorporating firm-destination-specific effects such as demand shocks in theories of exporter heterogeneity. Our study estimates the proportion of firm-level sales variation within a product-destination market that can be explained by firm-specific effects such as productivity. We use a highly detailed dataset comprising firm-product-destination-specific exports and correct for truncation as modeled by recent trade theories. We find that the contribution of firm-specific effects varies greatly across products and that it is 45% for the median product. That is, within-destination sales variation is primarily explained by firm-destination-specific heterogeneity for the majority of products.",

author = "Munch, {Jakob Roland} and Nguyen, {Daniel Xuyen}",

note = "JEL classification: F12, C24",

year = "2014",

month = oct,

doi = "10.1016/j.jebo.2014.06.012",

language = "English",

volume = "106",

pages = "317–334",

journal = "Journal of Economic Behavior & Organization",

issn = "0167-2681",

publisher = "Elsevier",

}

TY - JOUR

T1 - Decomposing Firm-Level Sales variation

AU - Munch, Jakob Roland

AU - Nguyen, Daniel Xuyen

N1 - JEL classification: F12, C24

PY - 2014/10

Y1 - 2014/10

N2 - Recently, much of the trade literature has been focused on using firm-specific productivity to explain export heterogeneity. This study provides evidence for the importance of incorporating firm-destination-specific effects such as demand shocks in theories of exporter heterogeneity. Our study estimates the proportion of firm-level sales variation within a product-destination market that can be explained by firm-specific effects such as productivity. We use a highly detailed dataset comprising firm-product-destination-specific exports and correct for truncation as modeled by recent trade theories. We find that the contribution of firm-specific effects varies greatly across products and that it is 45% for the median product. That is, within-destination sales variation is primarily explained by firm-destination-specific heterogeneity for the majority of products.

AB - Recently, much of the trade literature has been focused on using firm-specific productivity to explain export heterogeneity. This study provides evidence for the importance of incorporating firm-destination-specific effects such as demand shocks in theories of exporter heterogeneity. Our study estimates the proportion of firm-level sales variation within a product-destination market that can be explained by firm-specific effects such as productivity. We use a highly detailed dataset comprising firm-product-destination-specific exports and correct for truncation as modeled by recent trade theories. We find that the contribution of firm-specific effects varies greatly across products and that it is 45% for the median product. That is, within-destination sales variation is primarily explained by firm-destination-specific heterogeneity for the majority of products.

U2 - 10.1016/j.jebo.2014.06.012

DO - 10.1016/j.jebo.2014.06.012

M3 - Journal article

SN - 0167-2681

VL - 106

SP - 317

EP - 334

JO - Journal of Economic Behavior & Organization

JF - Journal of Economic Behavior & Organization

ER -

Decomposing Firm-Level Sales variation

Abstract

Adgang til dokumentet

Fingeraftryk

Citationsformater