Trade exerts generally favorable effects on the performance of domestic manufacturing industries in the dimensions of allocative and productive efficiency. We review theory and recent evidence on these linkages and also explore a third effect on the turbulence of competitive conditions and the...

This paper investigates the extent to which productivity growth is the result of turnover - the process that shifts output from one firm to another as a result of the competitive process. Turnover occurs because some firms gain market share and others lose it. Some turnover is due to entry and...