Firms in International Trade

60 Pages Posted: 8 Mar 2017

See all articles by Federico J. Díez

Federico J. Díez

Federal Reserve Bank of Boston

Jesse Mora

Occidental College - Department of Economics

Alan Christopher Spearot

University of California, Santa Cruz

Date Written: 2016-12-01

Abstract

Firms play a critical role in the global economy. In this paper, we survey the behavior of firms in the international economy, both in theory and in the data. We first summarize the key empirical facts that motivate the study of firms in trade. Then, we detail recent theoretical developments on the micro-foundations of firm behavior in an international context, focusing on how firms select into exporting, and how firms respond to international shocks. Finally, we turn to a “real world,” empirically focused view of exporting, beginning with the growth dynamics of firms expanding to global markets, and then addressing the critical financing decisions firms make when engaging in international commerce. We conclude with directions for future research.

Keywords: firm heterogeneity, international trade, exporters

JEL Classification: F10, F12, F14

Suggested Citation

Díez, Federico J. and Mora, Jesse and Spearot, Alan Christopher, Firms in International Trade (2016-12-01). FRB of Boston Working Paper No. 16-25. Available at SSRN: https://ssrn.com/abstract=2929409

Federico J. Díez (Contact Author)

Federal Reserve Bank of Boston ( email )

600 Atlantic Avenue
Boston, MA 02210
United States

Jesse Mora

Occidental College - Department of Economics ( email )

Los Angeles, CA 90041
United States

Alan Christopher Spearot

University of California, Santa Cruz ( email )

1156 High St
Santa Cruz, CA 95064
United States

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