KREI News
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Prof. Munisamy Gopinath Delivered a Presentation on Firm Heterogeneity and International Trade
At a seminar held on March 28 at the Korea Rural Economic Institute, Munisamy Gopinath, professor of agricultural and resource economics at Oregon State University, delivered a presentation entitled “Firm Heterogeneity and International Trade: Implications for Agricultural and Food Industries.”
At the seminar, Prof. Gopinath explained that the reason for the coexistence of both exporting and non-exporting farms within a country lies in firm heterogeneity and particularly productivity difference. Giving an empirical analysis behind the thesis, Gopinath cited a Chilean example, presenting factors that influence farm producers’ decision to export.
Classifying the factors into farm and geographic characteristics, Gopinath analyzed the relative importance between the two factor groups affecting a firm’s decision to export. He found that farm productivity, not geographic characteristics, is a more important factor; and farms need to achieve a minimum productivity threshold if investments made to build a local production base and raise productivity are to reap the fruits.
§ DATA : Farm Heterogeneity and Export Production: The Case of Chile § PHOTO!!
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