firms always have a higher market share, there is no monotonic relationship between firms? productivity level and their … effect”. Therefore, the incentive to add more products weakens as productivity rises. This leads to Lemma 3 in Feenstra and …

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

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

is increasing in its productivity, with the most productive multinationals choosing not to rely on a foreign partner at …

industry productivity and social welfare. For this purpose we develop a reciprocal dumping model of international trade with … heterogeneous firms and endogenous R&D. We identify two effects of trade liberalization on productivity: a direct effect through … low (high) trade costs; (ii) increases expected industry productivity; and (iii) raises expected social welfare if trade …