Small firms export high-quality products, challenging size stereotypes in global trade.
The article explores how different types of companies decide to export their products. They created a model that considers both how productive a company is and how good they are at making high-quality products. This model helps explain why some small companies export while some big companies don't. The researchers found that companies that export tend to sell higher-quality products at higher prices, pay higher wages, and use more capital. This was supported by data from manufacturing companies in India, the U.S., Chile, and Colombia.