The impact of trade with pure exporters

Bo Gao, Mich Tvede

Research output: Contribution to journalArticlepeer-review


We extend the Melitz model to include pure exporters and study how they influence economic performance. We find that the presence of pure exporters lowers the productivity premium of exporters. Moreover, if there is a large portion of pure exporters, then international trade lowers the average productivity, but not welfare. Moreover, we explore how trade liberalization in form of lower entry cost into foreign markets and lower variable export cost influences the distribution of firms between pure exporters, ordinary exporters and non-exporters.

Original languageEnglish (US)
Pages (from-to)83-112
Number of pages30
JournalReview of International Economics
Issue number1
StatePublished - Feb 2022

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development


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