The Impact of Trade Costs on Firm Entry, Exporting, and Survival in Korea

13 Pages Posted: 21 Mar 2011

See all articles by Sooil Kim

Sooil Kim

affiliation not provided to SSRN

Jeffrey J. Reimer

Oregon State University - Department of Applied Economics

Munisamy Gopinath

Oregon State University - Department of Applied Economics

Abstract

This study examines how changes in trade costs have affected entry, exit, productivity, and exporting in the Korean manufacturing sector. We verify several predictions of heterogeneous-firm models of international trade. For example, falling import-trade costs are associated with less entry and lower market shares among existing domestic firms, and higher total factor productivity for Korean manufacturing as a whole. The size of firms plays an important role in many of our results. New domestic firms are more likely to be small, but large firms are less likely to exit and more likely to have an increase in total factor productivity.

JEL Classification: F10, D24

Suggested Citation

Kim, Sooil and Reimer, Jeffrey J. and Gopinath, Munisamy, The Impact of Trade Costs on Firm Entry, Exporting, and Survival in Korea. Economic Inquiry, Vol. 49, No. 2, pp. 434-446, 2011, Available at SSRN: https://ssrn.com/abstract=1790156 or http://dx.doi.org/10.1111/j.1465-7295.2009.00286.x

Sooil Kim

affiliation not provided to SSRN

No Address Available

Jeffrey J. Reimer (Contact Author)

Oregon State University - Department of Applied Economics ( email )

213 Ballard Extension Hall
Corvallis, OR 97331-4501
United States

Munisamy Gopinath

Oregon State University - Department of Applied Economics ( email )

213 Ballard Extension Hall
Corvallis, OR 97331-4501
United States
541-737-1402 (Phone)
541-737-2563 (Fax)

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