Exporter Dynamics and Productivity: Editor’s Overview

TRADE POLICY RESEARCH 2010: EXPORTER DYNAMICS AND PRODUCTIVITY, Dan Ciuriak, ed., pp. 1-17, Ottawa: Foreign Affairs and International Trade Canada, 2010

19 Pages Posted: 26 Jun 2010

See all articles by Dan Ciuriak

Dan Ciuriak

Ciuriak Consulting Inc.; C.D. Howe Institute; Centre for International Governance Innovation (CIGI); BKP Development Research & Consulting GmbH; Asia Pacific Foundation of Canada

Date Written: June 2010

Abstract

In recent years, understanding of the role of trade and investment in economic growth has been significantly advanced by new theoretical and empirical analysis based on explicit recognition of the heterogeneous nature of firms. In this literature (“new new trade theory”), firms with varying levels of productivity co-exist in the same industry, firms face sunk costs of introducing their products into foreign markets, uncertainty about success in these markets and information asymmetries concerning local conditions in the foreign markets. Their profitability in foreign markets is affected by international macroeconomic conditions, including by volatility and protracted disequilibrium conditions in real exchange rates. Accordingly, only relatively highly productive firms can absorb the costs of entering export markets and only the most productive of these can absorb the still higher costs of investing abroad. The flux of entry into, and exit out of, various foreign markets — or change at the “extensive margin” — constitutes an important factor in determining a country’s overall trade growth, alongside changes in sales by existing exporters of established products in established markets (which represents change at the “intensive margin”). To explore these research developments, the Department of Foreign Affairs and International Trade organized a conference on Exporter Dynamics and Productivity, 27 March 2009, the proceedings of which are compiled in Trade Policy Research 2010: Exporter Dynamics and Productivity.

This chapter provides a thematic overview of the findings of these papers. Following the structure of the book, it addresses in turn: exporter dynamics and productivity; the effectiveness of trade promotion programs; and Canadian trade and investment dynamics.

Keywords: Heterogeneous firms, trade, FDI, productivity, innovation, export promotion, Canada

JEL Classification: F1, F23

Suggested Citation

Ciuriak, Dan, Exporter Dynamics and Productivity: Editor’s Overview (June 2010). TRADE POLICY RESEARCH 2010: EXPORTER DYNAMICS AND PRODUCTIVITY, Dan Ciuriak, ed., pp. 1-17, Ottawa: Foreign Affairs and International Trade Canada, 2010. Available at SSRN: https://ssrn.com/abstract=1629705

Dan Ciuriak (Contact Author)

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8
Canada

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

BKP Development Research & Consulting GmbH ( email )

Romanstrasse 74
München, 80639
Germany

Asia Pacific Foundation of Canada ( email )

Canada

HOME PAGE: http://ciuriakconsulting.com/

Register to save articles to
your library

Register

Paper statistics

Downloads
27
Abstract Views
306
PlumX Metrics