We construct a model of trade with heterogeneous retailers to examine the effects of trade liberalization on retail market structure, imports and social welfare. We are especially interested in investigating the transmission of lower import prices into consumer prices and the effects of retail...

This paper investigates the effects of reciprocal tariff reductions in a two-identical country model of product differentiation. It makes three points. First, the existing results about market structure effects of trade liberalization can easily be replicated from a one-dimensional...

We use plant-level data to study the link between the local availability of services and the decision of manufacturing firms to source materials from abroad. We develop a model to generate predictions about how the intensity of international sourcing of materials depends on the availability of...