We develop a monopolistically competitive model of trade with firm heterogeneity - in terms of productivity differences … productivity of competing firms. We analyze how these features vary across markets of different size that are not perfectly … in that market. Aggregate productivity and average markups thus respond to both the size of a market and the extent of …

offshoring. This result can be understood to arise from the productivity enhancing (cost reducing) effect of offshoring. If the …In this paper, in order to study the impact of offshoring on sectoral and economywide rates of unemployment, we … search cost is identical in the two sectors, or even if the search cost is higher in the sector which experiences offshoring …

trade shifts the distribution towards higher average productivity due to entry and exit of firms. These models ignore the … possibility that freer trade also alters the firm-size distribution via international firm migration (offshoring); firms must, by … assumption, produce in their 'birth nation.' We show that when firms are allowed to switch locations, new productivity effects …

that capital deepening made China's production and exports more capital-intensive, although labor-biased productivity …

consequences of changing firm concentration: productivity, distortions, selection into exporting, scale economies, and … firms is attributable to higher productivity growth rather than differential distortions. Exceptional performance of the top …

A growing empirical literature attributes much of the productivity advantages of large, "superstar" firms to their …

marginal and average firm productivity are reversed in our model, yet there are significant gains from trade arising from … workers at home and abroad. In an extension to our baseline model, we illustrate that offshoring production from the high …