Behrens, Kristian; Mion, Giordano; Murata, Yasusada; … - 2021
firms to leave the market, thereby affecting aggregate productivity. Since wage and productivity responses are endogenous …, our model is well suited to study the impacts of trade integration on aggregate productivity and factor prices. Using … Canada-U.S. interregional trade data, we first estimate a system of theory-based gravity equations under the general …