industry productivity. For this purpose we develop a reciprocal dumping model of international trade with heterogeneous firms … expected industry productivity. The central results of the paper regarding firm and industry level R&D spending differ …

face a fall in output, mark-ups and profits, and the average productivity of survivors increases. These pro …

In recent years wages in China have been rising and the yuan has appreciated, potentially eroding China’s cost … advantage in manufactures. This paper explores the evolution of China’s relative unit labor costs in manufacturing over 1998 …-2009. Between 1998 and 2003 China’s unit labor costs fell, but since 2003 they have increased both absolutely and relative to US …

-border versus foreign affiliate sales. We find that for firms in our sample productivity is both a statistically significant and …

drives low-productivity firms from the small country’s home market, replacing them with high-productivity exporters from … abroad. This endogenous policy response creates a selection effect that increases the average productivity of home firms when …

This paper provides a direct test of how fixed export costs and productivity jointly determine firm-level export …, while those with higher productivity export more. These outcomes are the foundation of the widely-used sorting mechanism in … the trade models with firm heterogeneity. A particular and novel finding is that high-productivity nonexporters face …