Market Penetration Costs and the New Consumers Margin in International Trade

By Costas Arkolakis. Journal of Political Economy, 2008

805 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/2d5252a49d81f1c453ce7a9396a4ac30720d4d34

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Citations in the corpus

The Extensive Margin of Exporting Products: A Firm-Level Analysis (2010, positive): “Moreover, heterogeneity in market access cost allows us to nest Arkolakis (2010) market penetration costs.”
The International Elasticity Puzzle (2008, background): “The prevalence of small exporters—measured either by employment or sales—is explored in more detail in Arkolakis (2007).”
International Trade and Aggregate Fluctuations in Granular Economies (2009, neutral): “Most of the recent implementations of heterogeneous firms models assume that the distribution of firm productivity is Pareto (see, e.g., Helpman, Melitz and Yeaple 2004, Ghironi and Melitz 2005, Chaney 2008, Arkolakis 2008, Eaton, Kortum and Kramarz 2008).”
How Important Is the New Goods Margin in International Trade? (2013, positive): “Models with heterogeneous firms facing fixed export costs, as in Melitz (2003), or market penetration costs, as in Arkolakis (2010), have proven useful in understanding firm-level export patterns, and models of Ricardian comparative advantage, as in Yi (2003), use the extensive margin to explain the”
The Effects of Joining Multinational Supply Chains: New Evidence from Firm-to-Firm Linkages (2019, background): “This can be microfounded with either marketing (Arkolakis, 2010) or search costs (Bernard, Moxnes, and Saito, 2019).”
The Empirics of Firm Heterogeneity and International Trade (2012, background): “as in Arkolakis (2011) and Ruhl and Willis (2011). As productivity evolves over time, rms decide whether to enter or exit individual export markets and whether or not to continue production.”
The Origins of Firm Heterogeneity: A Production Network Approach (2019, background): “By contrast, in canonical one-dimensional models of ﬁrm heterogeneity, or models with two or more, but independent, dimensions (e.g., Arkolakis, 2010, Bernard et al., 2018a, Eaton et al., 2018, Lim, 2018), highly productive ﬁrms would both attract many customers and have a high market share among…”
The Tip of the Iceberg: A Quantitative Framework for Estimating Trade Costs (2015, methodology): “The only difference compared to the baseline specification in equation (6) is that the trade cost coeffi cient is now multiplied by the factors σ1k/φ̃1k and σ2k/φ̃2k.”
Theories of Heterogeneous Firms and Trade (2011, neutral): “Arkolakis (2008) argues that these large values for fixed costs are hard to reconcile with small export shipments and proposes instead a model of endogenous market entry costs, which is discussed further below.”
Product Standards and Margins of Trade: Firm Level Evidence (2015, positive): “5 Similarly, in an endogenous-costs model such as Arkolakis (2010), where ﬁrms pay an increasing marginal cost of marketing to reach more consumers and where the cost to reach a certain number of consumers falls with the size of the population in the export market, the exports of small ﬁrms fall…”