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!!