International Trade with Firm Heterogeneity in Factor Shares

Arbeitspapier

This paper presents a trade model with capital and labor as factors of production. The main contribution of this paper is that it considers a new type of firm heterogeneity, which is empirically relevant: firms in this paper differ with respect to their factor shares in production. Therefore, this paper addresses the following four empirical facts on globalization, firms’ factor shares and factor prices: (i) firms within narrowly defined industries exhibit a large degree of heterogeneity in factor shares in production; (ii) exporters are, on average, more capital intensive than non—exporters; (iii) globalization decreases labor’s share in national income; (iv) the larger the share of exporters in the industry, the larger the increase in the industry’s wages due to globalization.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 09-020/1

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Production, Pricing, and Market Structure; Size Distribution of Firms
• Subject: two—factor trade model ; firm heterogeneity in factor shares ; Intraindustrieller Handel ; Produktionsfaktor ; Faktorpreis ; Allgemeines Gleichgewicht ; Mehr-Sektoren-Modell ; Optimales Wachstum ; Außenwirtschaftstheorie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Namini, Julian Emami
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/86663
• Last update: 10.03.2025, 11:43 AM CET