Baldwin, Richard; Okubo, Toshihiro - C.E.P.R. Discussion Papers - 2006
trade shifts the distribution towards higher average productivity due to entry and exit of firms. These models ignore the … possibility that freer trade also alters the firm-size distribution via international firm migration (offshoring); firms must, by … assumption, produce in their 'birth nation.' We show that when firms are allowed to switch locations, new productivity effects …