Navas, Antonio; Serti, Francesco; Tomasi, Chiara - Department of Economics, University of Sheffield - 2013
countries. The model highlights how imports from a specific country affects a firm's decision to export to that country (the … extensive margin), as well as its export value (the intensive margin). The model shows that the effect of both distance and … market size on the export margins is magnified when imports in intermediates are accounted for. Indeed, to the extent that …
