This paper proposes that quality differentiation is an important feature of the operations of multi-product firms. We … develop a model in which manufacturers vary product quality across their product range by using inputs of different quality … levels. Firms' core competency is in varieties of superior quality that bring higher sales despite being more expensive …

quality and quality-adjusted prices, from which we will construct price indexes for imports and exports for each country that …The unit values of internationally traded goods are heavily influenced by quality. We model this in an extended … monopolistic competition framework where, in addition to choosing price, firms simultaneously choose quality. We allow countries to …

find that variation in firm quality and product scope explains at least four fifths of the variation in firm sales. Most … firms, and the fact that larger firms supply more products than smaller firms, implies that standard productivity measures … are not independent of demand system assumptions and probably dramatically understate the relative productivity of the …

international product market linkages. We begin with a novel decomposition of the growth in countries' exports into the contribution … external geography, poor internal geography, and poor institutional quality contribute in approximately equal measure to …

twice as many more new varieties of goods as private domestic firms. Advantages in productivity account for 32 to 62 percent …

exporters. In particular, high market-specific fixed costs of exporting, the (lack of) quality of the general contracting …. Aggregate exports to destinations with high shares of indirect exports are much less responsive to changes in the real exchange … rate than are exports to countries served primarily by direct exporters. …