FIRM EXPORT DYNAMICS AND THE EXCHANGE RATE: A QUANTITATIVE EXPLORATION

This article provides a theoretical model of firm dynamics that replicates the export elasticity values estimated in empirical literature, and heterogeneous response firms. The analysis alternative versions allows for decomposition contributions different mechanisms (distribution costs, imported intermediate inputs, gradual growth foreign demand, market access costs foreign/domestic currency). Distribution represent most important factor to replicate estimations. Furthermore, distribution allow exports exchange rate movements by decreasing demand more productive