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On Export Premia

Author

Listed:
  • Kozo Kiyota

    (Keio Economic Observatory, Keio University)

  • Toshiyuki Matsuura

    (Keio Economic Observatory, Keio University)

  • Lionel Nesta

    (Université Côte d'Azur
    GREDEG CNRS
    OFCE Sciences Po.
    SKEMA Business School)

Abstract

This paper formally shows that the magnitude of the export premium, the fact that exporters are more productive than non-exporters, conveys little economic information on the underlying selection mechanism into export markets for two major reasons. First, variations in export premia may reflect differences in product and factor market imperfections. Second, under the assumption that the true productivity of firms follows a log-normal distribution, we show that a large export premium does not necessarily entail high export costs. This is due to the non-monotonic relationship between the export productivity cutoff point and the corresponding export premium.

Suggested Citation

  • Kozo Kiyota & Toshiyuki Matsuura & Lionel Nesta, 2019. "On Export Premia," GREDEG Working Papers 2019-10, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Mar 2019.
    • Handle: RePEc:gre:wpaper:2019-10
    as

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    File URL: http://195.220.190.85/GREDEG-WP-2019-10.pdf
    File Function: Revised version, 2019-03
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Export premium; Productivity; Normal distribution; Firm heterogeneity;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D3 - Microeconomics - - Distribution
    • F1 - International Economics - - Trade

    NEP fields

    This paper has been announced in the following NEP Reports:

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