This paper focuses on self-selection into trade by exporting and importing firms, and on the presence of differential … heterogeneity and the connection between firm-level performance and international trade. They provide evidence on the remarkable …

This paper develops an efficiency theory of contingent trade policies. We model the competition for a domestic market … distributions are asymmetric because the foreign firm incurs a trade cost to serve the domestic market. We show that the foreign …, justifying the use of contingent trade policy on efficiency grounds. Despite an environment of asymmetric information, contingent …