<heading id="h1" level="1" format="display" implicit="no">Abstract</heading> This paper uses an oligopoly model with heterogeneous firms to examine how an industry adjusts to rising import competition. The model predicts that in the short run the least efficient firms in the industry become inactive, surviving firms face a fall in output, mark-ups and profits,...

type="main" xml:id="twec12157-abs-0001" <title type="main">Abstract</title> <p>We examine how foreign ownership of a firm affects the variety of goods that the firm exports and the number of countries it trades with. We construct a simple theoretical model of how foreign ownership may affect these extensive margins of...</p>