liberalization. Firm productivity in a given product is modeled as a combination of firm-level "ability" and firm …-level ability raises a firm's productivity across all products, which induces a positive correlation between a firm's intensive … (output per product) and extensive (number of products) margins. Trade liberalization fosters productivity growth within and …

international trade with heterogeneous firms predict that industry productivity will rise as trade costs fall due to the … costs over time and industries. As the models predict, productivity growth is faster in industries with falling trade costs …

This paper develops a general test of factor price equalization that is robust to unobserved regional productivity …