1. Chapter 13: Heterogeneous firms
Charles van Marrewijk
International Trade
Chapter 13: Heterogeneous firms

2. 13.2 comparative advantage, trade, and firm heterogeneity
Firm productivity
Comparative advantage industry
autarky cutoff
trade cutoff
export cutoff A B C
Comparative disadvantage industry B’ C’

3. 13.3 exporting activities in different sectors; USA, 2007
bubbles proportional to % of firms in total manufacturing for that sector

4. 13.4 exporter premia in percent; usa, 2007

5. 13.5 differences in total factor productivity; Belgium, 2004
0.5
Domestic firms
Exporters
Exporters and FDI
Density
Total Factor Productivity (TFP) 6 14

6. 13.6a exporting and importing in different sectors; USA, 2007
bubbles proportional to % of firms in total manufacturing for that sector

7. 13.6b exporting and importing in different sectors; USA, 2007
bubbles proportional to % of firms in total manufacturing for that sector

8. 13.7 trade premia in percent; USA, 2007

9. 13.8 exporter and FDI premia; France, Belgium, and Norway

10. 13.9 structure of the heterogeneous firms model
Unlimited pool of
potential entrants
13.9 structure of the heterogeneous firms model
equality in stationary equilibrium
All uncertainty resolved
equality in stationary equilibrium

11. fixed costs, operating profit
13.10 firm heterogeneity, prices, and profits
price MC
operating profit MR
demand
fixed cost b2 p2
not viable
cutoff point
viable b1 p1 a2 c2 c2 a1 c1 c1 q2 q1
quantity
fixed costs, operating profit

12. 13.11 firm productivity and firm profits

13. 13.12 firm entry problem
viable entrants
exiting entrants

14. 13.13 cumulative distribution (cdf) and probability density (pdf)

15. 13.14 international trade viability and profits
trade profits

16. 13.15 impact of trade and distribution of firms

17. 13.16 firm productivity and firm revenue

18. 13.17 productivity distributions in Latin America, 2006

19. 13.18 firm productivity and mode of entry
low
modest
high
very high
exit
domestic
export
FDI multinational
Mode of entry