@techreport{b98f985188b6487d8fe53c4a41ddf98a,
title = "Import-push or Export-pull?: An Industry-level Analysis of the Impact of Trade on Firm Exit",
abstract = "Does the selection effect of trade work solely through competition from imports, or does the export market further contribute to firm selection? This paper provides a re-interpretation of the different mechanisms in terms of selection on profitability - rather than productivity - and derives novel predictions regarding the export market and the role of product differentiation. Empirical results for a sample of Danish manufacturing industries confirm the import-{"}push{"} hypothesis as well as the export-{"}pull{"} hypothesis, but also reveal differences across industries. The selection effect of trade is mainly driven by the {"}import-push{"} if product differentiation is high, whereas it is driven by the {"}export-pull{"} if goods are homogeneous.",
keywords = "Firm exit, Exports, Import competition, Heterogeneous firms",
author = "J{\"a}kel, {Ina Charlotte}",
year = "2013",
month = sep,
day = "18",
language = "English",
series = "Economics Working Papers",
publisher = "Institut for {\O}konomi, Aarhus Universitet",
number = "2013-20",
type = "WorkingPaper",
institution = "Institut for {\O}konomi, Aarhus Universitet",
}