Exports,investment and production growth: A dynamic heterogeneous firm model with learning and entry costs |
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| Authors: | Ruohan Wu Mario Javier Miranda |
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| Institution: | 1. Department of Finance and Accounting, Alabama State University, Montgomery 36104, United Statesrwu@alasu.edu;3. Department of Agricultural, Environmental, and Development Economics, The Ohio State University, Columbus 43210, United States |
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| Abstract: | We analyze a firm’s joint decision to export and invest using a model that incorporates the essential features of self-selection and learning-by-exporting theories of firm-level dynamics. We calibrate the model to 2002–2007 Chilean manufacturing plant data and simulate it under different assumptions, finding that neither self-selection nor learning-by-exporting alone can adequately explain the observed cross-sectional relationship between firm level exports and capital, favoring instead a model that allows both mechanisms to work in tandem. |
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| Keywords: | exports investment self-selection learning-by-exporting heterogeneity |
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