TY  - GEN
AB  - By applying quadratic instead of CES consumer preferences in a monopolistic competition
model with heterogeneous firms, this paper investigates the robustness of the conventional sorting of cross-border active firms, first described by Helpman, Melitz and Yeaple (2004), and finds
thereby an alternative type of sorting: While (sufficiently) productive firms export and more
productive ones engage in foreign direct investment (FDI), the most productive firms do not
undertake FDI, but export again, establishing the so-called sandwich sorting. Evidence for this
type can be observed for investment and services trade patterns.
DA  - 2016
DO  - 10.4119/unibi/2915591
KW  - Quadratic preferences
KW  - heterogeneous firms
KW  - exporting
KW  - FDI
KW  - unconventional sorting.
LA  - eng
PY  - 2016
SN  - 2196-2723
SP  - 15-
TI  - Export vs. FDI: Sandwich Sorting with Quadratic Preferences
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29155911
Y2  - 2024-11-22T04:34:30
ER  -