The Margins of US Trade

15 Pages Posted: 7 May 2010 Last revised: 27 Mar 2012

See all articles by J. Bradford Jensen

J. Bradford Jensen

Georgetown University - McDonough School of Business; Peterson Institute for International Economics

Stephen J. Redding

Princeton University

Peter K. Schott

Yale University - School of Management; National Bureau of Economic Research (NBER); Yale University - Cowles Foundation

Andrew B. Bernard

Dartmouth College - Tuck School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Date Written: May 7, 2010

Abstract

Recent research in international trade emphasizes the importance of firms' extensive margins for understanding overall patterns of trade as well as how firms respond to specific events such as trade liberalization. In this paper, we use detailed US trade statistics to provide a broad overview of how the margins of trade contribute to variation in US imports and exports across trading partners, types of trade (i.e., arm's length versus related party) and both short and long time horizons. Among other results, we highlight the differential behavior of related-party and arm's-length trade in response to the 1997 Asian financial crisis.

Keywords: Heterogeneous Firms, Product Differentiation, Product Market Entry and Exit

JEL Classification: F1

Suggested Citation

Jensen, J. Bradford and Redding, Stephen J. and Schott, Peter K. and Bernard, Andrew B., The Margins of US Trade (May 7, 2010). Peterson Institute for International Economics Working Paper No. 10-4, Tuck School of Business Working Paper No. 2010-78, Available at SSRN: https://ssrn.com/abstract=1602028 or http://dx.doi.org/10.2139/ssrn.1602028

J. Bradford Jensen (Contact Author)

Georgetown University - McDonough School of Business ( email )

3700 O Street, NW
Washington, DC 20057
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Peterson Institute for International Economics ( email )

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Stephen J. Redding

Princeton University ( email )

Princeton, NJ 08544-1021
United States

HOME PAGE: http://www.princeton.edu/~reddings/

Peter K. Schott

Yale University - School of Management ( email )

135 Prospect Street
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203-436-4260 (Phone)
203-436-6974 (Fax)

HOME PAGE: http://www.som.yale.edu/faculty/pks4

National Bureau of Economic Research (NBER)

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Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
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Andrew B. Bernard

Dartmouth College - Tuck School of Business ( email )

100 Tuck Hall
Hanover, NH 03755
United States
603-646-0302 (Phone)
603-646-9084 (Fax)

HOME PAGE: http://mba.tuck.dartmouth.edu/pages/faculty/Andrew.Bernard/

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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