We study how a preferential trade agreement (PTA) affects international sourcing decisions, aggregate productivity and … from the investment. This raises aggregate productivity. On the other hand, the agreement yields sourcing diversion. More … tariff preferences attract too many matches to the bloc, the average productivity of the industry tends to fall. When the …

suppliers' decisions to invest, and where underinvestment is more severe for higher productivity firms. A rule of origin offers … within the trading bloc. Such a rule alters behavior for only a subset of suppliers, as some (very-high-productivity …) suppliers comply with the rule in an unconstrained way and some (very-low-productivity) suppliers choose not to comply. For …

We study how a preferential trade agreement (PTA) affects international sourcing decisions, aggregate productivity and … from the investment. This raises aggregate productivity. On the other hand, the agreement yields sourcing diversion. More … tariff preferences attract too many matches to the bloc, the average productivity of the industry tends to fall. When the …

suppliers’ decisions to invest, and where underinvestment is more severe for higher productivity firms. A rule of origin offers … within the trading bloc. Such a rule alters behavior for only a subset of suppliers, as some (very-high-productivity …) suppliers comply with the rule in an unconstrained way and some (very-low-productivity) suppliers choose not to comply. For …

We investigate theoretically and empirically the role of wholesalers in mediating the productivity effects of trade … liberalization. Intermediaries provide indirect access to foreign produced inputs. The productivity effects of input tariff cuts on … firms experience productivity gains from reducing input tariffs if trade intermediation of foreign inputs within their …

We investigate theoretically and empirically the role of wholesalers in mediating the productivity effects of trade … liberalization. Intermediaries provide indirect access to foreign produced inputs. The productivity effects of input tariff cuts on … firms experience productivity gains from reducing input tariffs if trade intermediation of foreign inputs within their …