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Identifying the dispersion of the Pareto productivity distribution in international trade

Author

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  • Kang, Kichun

Abstract

Most of the heterogeneous firm studies use the Pareto distribution of productivity. This paper identifies the Pareto parameter by relying on guidance from monopolistic competition models. The application to Korean export industries reports that the dispersion of productivity varies across industries.

Suggested Citation

  • Kang, Kichun, 2017. "Identifying the dispersion of the Pareto productivity distribution in international trade," Economics Letters, Elsevier, vol. 161(C), pages 108-111.
    • Handle: RePEc:eee:ecolet:v:161:y:2017:i:c:p:108-111
    DOI: 10.1016/j.econlet.2017.09.030
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    References listed on IDEAS

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    7. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-177, March.
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    9. Keith Head & Thierry Mayer & Mathias Thoenig, 2014. "Welfare and Trade without Pareto," American Economic Review, American Economic Association, vol. 104(5), pages 310-316, May.
    10. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-1721, September.
    11. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
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    Cited by:

    1. Márta Bisztray & Francesca de Nicola & Balázs Muraközy, 2020. "Industry dynamics and high-growth firms' contribution to productivity growth," CERS-IE WORKING PAPERS 2047, Institute of Economics, Centre for Economic and Regional Studies.
    2. Márta Bisztray & Francesca de Nicola & Balázs Muraközy, 2023. "High-growth firms’ contribution to aggregate productivity growth," Small Business Economics, Springer, vol. 60(2), pages 771-811, February.
    3. Kichun Kang, 2022. "Import Variety and Productivity: Positive or Negative?," Korean Economic Review, Korean Economic Association, vol. 38, pages 43-72.
    4. Yuichiro Matsumoto, 2019. "Firm Size Distribution and Variable Elasticity of Demand," Discussion Papers in Economics and Business 19-02, Osaka University, Graduate School of Economics.

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    More about this item

    Keywords

    Pareto dispersion; Productivity; Export variety;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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