dimensions of heterogeneity: firms specific productivity shocks and firm-market specific demand shocks. The structural parameters …

In this paper we explore the effect of trade policy on productivity and welfare in the now standard model of firm … establish that welfare can be decomposed into four terms: productivity, terms of trade, variety and curvature, where the latter … allocation. We also show that an export subsidy generates an increase in productivity, but given the negative joint effect on the …

How does trade liberalization affect wages? This is the first paper to consider in theory and data how the impact of …

research regardless of trade barriers or research productivity. As long as trade barriers are not too high, faster diffusion …

Economists emphasize two channels through which import liberalization affects productivity, one operating between and … to 2002. First, in the long run, import liberalization lowers productivity in domestic industries through selection. This …, liberalization also generates technological learning that can on net raise domestic productivity. Third, for short time horizons of …