Plants and Productivity in International Trade
Abstract
We reconcile trade theory with plant-level export behavior, extending the Ricardian model to accommodate many countries, geographic barriers, and imperfect competition. Our model captures qualitatively basic facts about U.S. plants: (i) productivity dispersion, (ii) higher productivity among exporters, (iii) the small fraction who export, (iv) the small fraction earned from exports among exporting plants, and (v) the size advantage of exporters. Fitting the model to bilateral trade among the United States and 46 major trade partners, we examine the impact of globalization and dollar appreciation on productivity, plant entry and exit, and labor turnover in U.S. manufacturing.
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Trade liberalization can raise productivity by improving factor allocation or by inducing adoption of more advanced technologies.
“Trade liberalization can increase productivity by inducing a better allocation of production factors or the adoption of more advanced technologies.”
From Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms (2011) · cites this paper as Andrew B. Bernard et al. 2003
Trade integration reallocates market shares toward exporters, which are the most productive firms, raising aggregate productivity.
“trade integration reallocates market shares towards exporters, the most productive firms, increasing aggregate productivity.”
From Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms (2011) · cites this paper as Andrew B. Bernard et al. 2003
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- Authors
- Bernard, A. B., Eaton, J., Jensen, J. B., & Kortum, S.
- Affiliations
- Dartmouth College (US)
- National Bureau of Economic Research (US)
- Peterson Institute for International Economics (US)
- University of Minnesota (US)
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2003-08-01
- Volume
- 93
- Issue
- 4
- Pages
- 1268-1290
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W3125387544
- Cited by
- 2,980
- References
- 41
- Citations by year
- 2026: 47 · 2025: 62 · 2024: 82 · 2023: 107 · 2022: 86 · 2021: 112 · 2020: 96 · 2019: 115 · 2018: 127 · 2017: 117 · 2016: 141 · 2015: 170 · 2014: 187 · 2013: 209 · 2012: 207
- FWCI
- 136.42
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- American Economic Review (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Technological Innovation
- Social Sciences › Business, Management and Accounting › Strategy and Management › Global Trade and Competitiveness
- Keywords
- firm productivity, Ricardian model, international trade, geographic barriers, imperfect competition, productivity dispersion, exporters, firm entry and exit, employee turnover, manufacturing companies, globalization, dollar appreciation, bilateral trade
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Statistics and arithmetic are recomputed, not judged.
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