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 …

fixed offshoring costs. In the skill-abundant country, high-productivity firms offshore a larger range of labor …-intensive inputs to the labor-abundant countries than low-productivity firms. Differently from the traditional versions of factor … intensity across firms that is positively correlated with firm productivity. Using French firm-level data for the years 1996 to …

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

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 …