Heterogeneous Fixed Export Costs and the Division of Labor

Shintaku, Koji (2015): Heterogeneous Fixed Export Costs and the Division of Labor.

Abstract

We theoretically investigates that how firms decide to exports and the extent of the division of labor under heterogeneous fixed export costs. In the equilibrium, exporters and non-exporters coexists and all exporters behave as borderline firms. Exporters promote the division of labor more strongly than non-exporters. A decrease in trade costs raises the cut off export fixed costs. It expands firm size and promotes the division of labor of exporters, while it shrinks firm size and make non-exporters refrain from the division of labor. These links between the cut off fixed export costs and the division of labor of exporters and non-exporters bring a new insight for the research line of trade and heterogeneous fixed export costs

• Item Type: MPRA Paper
• Language: English
• Keywords: heterogeneous fixed export costs; division of labor within firms; export decision
• Subjects: F - International Economics > F1 - Trade; F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation

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