Firm-productivity and export under non-constant marginal costs
Recent theoretical research shows that exporters are more productive than non- exporters. We show that this result holds almost trivially for the case of a constant marginal cost of production, as mainly assumed in the literature, but it may not hold true if the marginal cost is not constant. Our re...
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| Format: | Article |
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Economics Bulletin
2017
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| Online Access: | https://eprints.nottingham.ac.uk/42575/ |
| Summary: | Recent theoretical research shows that exporters are more productive than non- exporters. We show that this result holds almost trivially for the case of a constant marginal cost of production, as mainly assumed in the literature, but it may not hold true if the marginal cost is not constant. Our result provides a simple explanation for recent empirical evidence showing exporters can be less productive than non- exporters. |
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