Department of Economics and Business - Universitat Pompeu Fabra

Title:: Firms and economic performance: A view from trade
Authors:: Alessandra Bonfiglioli, Rosario Crinò and Gino Gancia
Date:: March 2018 (Revised: July 2019)
Abstract:: We use transaction-level US import data to compare firms from virtually all countries in the world competing in a single destination market. Guided by a simple theoretical framework, we decompose countries market shares into the contribution of the number of firm-products, their average attributes (quality and efficiency) and heterogeneity around the mean. To further explore the role of exceptional firms, we develop a novel decomposition that identifies the contribution of deviations from continuous distributions. We then study how the distribution of firm-level characteristics varies across countries. Our results shed new light on how firms shape aggregate economic performance.
Keywords:: US Imports, Firm Heterogeneity, International Trade, Prices, Quality, Variety, Granularity.
JEL codes:: F12, F14
Area of Research:: Macroeconomics and International Economics

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