The Rise of Exporting by U.S. Firms

74 Pages Posted: 11 Feb 2016

See all articles by Andrew H. McCallum

Andrew H. McCallum

Board of Governors of the Federal Reserve System

William Fabius Lincoln

Claremont McKenna College - Robert Day School of Economics and Finance

Date Written: 2016-02-10

Abstract

Although a great deal of ink has been spilled over the consequences of globalization, we do not yet fully understand the causes of increased worldwide trade. Using confidential microdata from the U.S. Census, we document widespread entry into countries abroad by U.S. firms from 1987 to 2006. We show that this extensive margin growth is unlikely to have been due to significant declines in entry costs. We instead find evidence of large roles for the development of the internet, trade agreements, and foreign income growth in driving these trends.

Keywords: globalization, barriers to entry, international trade, internet

JEL Classification: F10, F23, F60, L10, L86, M21

Suggested Citation

McCallum, Andrew H. and Lincoln, William Fabius, The Rise of Exporting by U.S. Firms (2016-02-10). FRB International Finance Discussion Paper No. 1157, Available at SSRN: https://ssrn.com/abstract=2731066 or http://dx.doi.org/10.17016/IFDP.2016.1157

Andrew H. McCallum (Contact Author)

Board of Governors of the Federal Reserve System ( email )

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Washington, DC 20551
United States

HOME PAGE: http://www.andrewhmccallum.com

William Fabius Lincoln

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6420
United States

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