Bernard, Andrew B.; Redding, Stephen; Schott, Peter K. - London School of Economics (LSE) - 2006
liberalization. Firm productivity in a given product is modeled as a combination of firm-level “ability” and firmproduct- level …-level ability raises a firm’s productivity across all products, which induces a positive correlation between a firm’s intensive … (output per product) and extensive (number of products) margins. Trade liberalization fosters productivity growth within and …