Authors
Sourafel Girma, Richard Kneller, Mauro Pisu
Publication date
2005/7
Journal
Review of World Economics
Volume
141
Pages
193-218
Publisher
Springer-Verlag
Description
In a recent paper Helpman, Melitz and Yeaple argue firm heterogeneity leads to self-selection in the structure of international commerce. Only the most productive firms find it profitable to meet the higher costs associated with FDI; the next set of firms finds it profitable to serve foreign markets through exporting; while the least productive firms serve only the domestic market. The paper tests this assumption using the concept of stochastic dominance. Robust support is found for the model, the productivity distribution of multinational firms is found to dominate that of export firms, which in turn dominates that of non-exporters.
Total citations
20042005200620072008200920102011201220132014201520162017201820192020202120222023202441017212828272820342712181918145913123
Scholar articles
S Girma, R Kneller, M Pisu - Review of World Economics, 2005