02156cas a2200337 a 4500 AALejournalIMF006392 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455200689 1018-5941 BD-DhAAL BD-DhAAL Levchenko, Andrei. Power Laws in Firm Size and Openness to Trade : Measurement and Implications / Andrei Levchenko, Julian Di Giovanni, Romain Ranciere. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (31 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Existing estimates of power laws in firm size typically ignore the impact of international trade. Using a simple theoretical framework, we show that international trade systematically affects the distribution of firm size: the power law exponent among exporting firms should be strictly lower in absolute value than the power law exponent among non-exporting rms. We use a dataset of French firms to demonstrate that this prediction is strongly supported by the data. While estimates of power law exponents have been used to pin down parameters in theoretical and quantitative models, our analysis implies that the existing estimates are systematically lower than the true values. We propose two simple ways of estimating power law parameters that take explicit account of exporting behavior. Mode of access: Internet Firm Export imf Firm Size imf Orders Firm imf Size Distribution imf WP imf United States imf Di Giovanni, Julian. Ranciere, Romain. IMF Working Papers; Working Paper ; No. 2010/109 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/109/001.2010.issue-109-en.xml IMF e-Library