into their direct (endowment accumulation, productivity growth, changes in trade costs, changing preferences) and indirect … productivity growth, and endogenous changes in expenditures shares on manufacturing goods and services. We quantify the importance … accumulation and trade costs have been the most important drivers of trade in the sample at hand, whereas productivity growth and …

manufacturing productivity and shares of manufacturing in GDP. Our calibrated model replicates these facts and also provides a …-homotheticity. We use the calibrated model to quantitatively ana-lyze the effect of increases in agricultural productivity and a further …

extension of our approach to multivariate diffusions, in which one can permit innovations to productivity to be transmitted …

productivity shifts arising from migration-induced knowledge diffusion and increased workforce diversity. While we find evidence …

Starting from the premise that productivity is heterogeneous across firms, Melitz (2003) explains why individual … productivity is key in determining the capability of a firm to export. In this paper we build a model along Melitz’s lines to show … international markets. We show that firms with low productivity may still be able to penetrate foreign markets provided they have …