This paper reviews the recent theoretical literature on heterogeneous firms and trade, whichemphasizes firm selection … this research and its relationship totraditional trade theories. We examine the implications of firm heterogeneity for … comparativeadvantage, market size, aggregate trade, the welfare gains from trade, and the relationshipbetween trade and income distribution …

This paper explores the impact of trade on growth when firms are heterogeneous. We find that greater openness produces … freer trade has on the marginal cost of innovating. The balance of the two effects is ambiguous with the sign depending upon … the exact nature of the innovation technology and its connection to international trade in goods and ideas. We consider …

Barriers to international trade are known to be large but because of data limitations it is hard to measure them … bilateral trade costs that indirectly infers trade frictions from observable trade data. I show that this trade cost measure is … consistent with a broad range of leading trade theories including Ricardian and heterogeneous firms models. In an application I …

comparable to halving its trade costs. …

This paper develops a general equilibrium model of multi-product firms and analyzes their behavior during trade … (output per product) and extensive (number of products) margins. Trade liberalization fosters productivity growth within and …