drives low-productivity firms from the small country's home market, replacing them with high-productivity exporters from … abroad. This endogenous policy response creates a selection effect that increases the average productivity of home firms when …

We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and …

elsewhere) can be used by multinational firms which have different productivity to serve the market abroad when product chains … abroad by either horizontal or vertical FDI. Upon opening a market to trade, firms with the lowest productivity will exit …, those with intermediate productivity will export, and those with higher productivity will choose fragmentation. Among the …

Heterogeneous firm productivity seems to provide an argument for governments to pursue ‘pick-the-winner' strategies by …, favoring high-productivity firms is indeed the optimal policy. When tax competition is aggressive and profit taxes are low …, however, the optimal tax policy is reversed and low-productivity firms are tax-favored …

output and average productivity, with stronger positive productivity effects for newly imported intermediate inputs. However …

This paper identifies the mechanism through which financial crises exert long-term negative effects on output. Theory … suggests that a shortfall in productivity-enhancing investments temporarily slows technological progress, creating a gap … the Global Financial Crisis, I show that tight credit reduced investments in productivity-enhancement, and significantly …