This paper develops a model of trade and CO2 emissions with heterogenous firms, where firms make abatement investments … turn, lower emissions per output. We show that the overall effect of trade is to reduce emissions. Trade weeds out some of … to more productive and cleaner exporters. The overall effect of trade is therefore to reduce emissions. We test empirical …

of the world economy that can be explained by incorporating the theory of the firm into the theory of international trade …

the data. We derive the sectoral EPP in a standard heterogeneous firms trade model and apply the insights from the model … EPPs across sectors, and hence across countries, can be explained by the variation in productivity dispersion, trade costs …

the trade models with firm heterogeneity. A particular and novel finding is that high-productivity nonexporters face …

agriculture is driven by comparative advantage and non-homothetic preferences. Countries are integrated through trade but trade is … better fit to cross-sectional data on manufacturing shares than frameworks which ignore the role of trade costs or non … lowering of trade barriers. …

In this paper, we merge the heterogenous firm trade model of Melitz (2003) with the Ricardian model of Dornbusch …, Fisher and Samuelson (DFS 1977) to explain how the pattern of international specialization and trade is determined by the … interaction of comparative advantage, economies of scale, country sizes and trade barriers. The model is able to capture the …

Helpman, Melitz and Rubinstein (2008) derive gravity equations to estimate effects of trade barriers on the intensive … and extensive margins of trade. They exploit the frequency of zeros in aggregate bilateral trade data to identify effects … extensive margin when data contain only positive trade flows. We also control for the pervasive presence of heteroscedasticity …

costs indicate that a large share of the simulated increase in trade is attributable to declines in the firm’s entry cost …