Brazil's trade liberalization between 1990 and 1993, and its partial reversal in 1995, are used to study how reduced … inward trade barriers affect productivity. The production function of Brazilian manufacturers is estimated at the ISIC3 two …-digit level under various alternatives, including an extension of Olley and Pakes' (1996) procedure. Firm-level productivity is …

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 …

Trefler (2004, AER) and others that industrial productivity increases more strongly in liberalized industries than in non … productivity increases more strongly in non-liberalized industries than in liberalized industries. …

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 …

industry productivity. For this purpose we develop a reciprocal dumping model of international trade with heterogeneous firms … expected industry productivity. The central results of the paper regarding firm and industry level R&D spending differ … significantly from the case of homogeneous firms. -- international trade ; firm heterogeneity ; R&D ; productivity ; market …

productivity differences, the model features profit and wage differentials across industries. We use this setting to study the …