Do, Quy-Toan; Levchenko, Andrei A. - In: Journal of Economic Theory 144 (2009) 4, pp. 1489-1520
This paper investigates the relationship between international trade and the quality of economic institutions. We model institutions as fixed costs of entry, in a framework that has two key features. First, preferences over entry costs differ across firms and depend on firm size. Larger firms...