The Rise of Exporting by U.S. Firms
74 Pages Posted: 11 Feb 2016
Date Written: 2016-02-10
Although a great deal of ink has been spilled over the consequences of globalization, we do not yet fully understand the causes of increased worldwide trade. Using confidential microdata from the U.S. Census, we document widespread entry into countries abroad by U.S. firms from 1987 to 2006. We show that this extensive margin growth is unlikely to have been due to significant declines in entry costs. We instead find evidence of large roles for the development of the internet, trade agreements, and foreign income growth in driving these trends.
Keywords: globalization, barriers to entry, international trade, internet
JEL Classification: F10, F23, F60, L10, L86, M21
Suggested Citation: Suggested Citation