firms always have a higher market share, there is no monotonic relationship between firms' productivity level and their … effect'. Therefore, the incentive to add more products weakens as productivity rises. This leads to Lemma 3 in Feenstra and … evidence is in line with the results from the theoretical model. -- Multi-product firms ; productivity ; optimal product scope …

face a fall in output, mark-ups and profits, and the average productivity of survivors increases. These pro … confirmed in an empirical study of the German clothing industry. -- International trade ; firm heterogeneity ; productivity …