Holzner, Christian; Larch, Mario - In: The World Economy 45 (2021) 1, pp. 136-175
Convex vacancy creation costs shape firms’ responses to trade liberalisation. They induce capacity constraints by … increasing firms’ costs of production. A profit maximising firm will therefore not fully meet the increased foreign demand, but … serve only a few export markets. More productive firms will export to more countries and profit more from trade …