productivity. We do so by developing a quantitative model with heterogeneous firms and international trade where firms can invest … cover the fixed costs of sourcing foreign inputs, which in turn also has a benign impact on measured productivity. Using …&D investment play a key role in explaining firm-level productivity growth. Moreover, the estimated returns to R&D are significantly …

identify the impact of increased import competition on firm performance and its contribution to the significant productivity … that imports took away market share from domestic firms. Furthermore, much of the effects on sectoral productivity come … firms in particular, which can be rationalized by an increase in the minimum productivity threshold needed to survive in …

-specific quotas following China’s entry into the World Trade Organization. Chinese import competition had two effects: first, it led …

, simulate the trade liberalization, and compute the resulting growth rates of Canadian industry productivity, exports and … have smaller productivity enhancing effects than Canadian tariff reductions due to the entry of less efficient exporters …. Quantitatively, the model tends to underpredict the impact of CUSFTA on growth rates of productivity, but overpredicts the increase …

investment (FDI) and the service sector; a reduction in tariffs applied to the rest of the world; and the imposition of hard …