Helpman, Elhanan; Melitz, Marc J.; Rubinstein, Yona - National Bureau of Economic Research (NBER) - 2007
We develop a simple model of international trade with heterogeneous firms that is consistent with a number of stylized … features of the data. In particular, the model predicts positive as well as zero trade flows across pairs of countries, and it … allows the number of exporting firms to vary across destination countries. As a result, the impact of trade frictions on …