We develop a model of international trade with export quality requirements and two dimensions of firm heterogeneity. In … empirical fact that firm size is not monotonically related with export status: there are small firms that export and large firms … heterogeneity as they imply no variation in export status after size is controlled for. We find strong support for the predictions …

This paper presents theory and evidence from highly disaggregated Chinese data that tariff reductions induce a country …'s producers to upgrade the quality of the goods that they export. The paper first documents two stylized facts regarding the … effect of trade liberalization on export prices and its relation with product differentiation. Next, the paper develops a …

We explore in this paper the role of export subsidies when goods arriving from foreign countries are initially of … goods, consumers view price as a signal of quality, a role for export subsidies can arise. In particular, we show that … absent export subsidies, entry of high quality firms may be blocked by their inability to sell at prices reflecting their …

-rights approach to the theory of the firm, the same force that creates product cycles, i.e., incomplete contracts, opens the door to a …