Helpman, Elhanan; Melitz, Marc J.; Yeaple, Stephen R. - 2021
firms to serve foreign markets either through exports or local subsidiary sales (FDI). These modes of market access involve … different relative costs, some of which are sunk while others vary with sales volume (such as transport costs and tariffs … aggregate export and FDI sales relative to the domestic and foreign market sizes. In particular, it is shown that firm level …