, the hypothesis that input quality and plant productivity are complementary in generating output quality. We embed this …

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 …

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 …