Navas, Antonio; Serti, Francesco; Tomasi, Chiara - Department of Economics, University of Sheffield - 2013
This paper introduces imports in intermediate inputs into a standard heterogeneous firms model of trade with asymmetric … countries. The model highlights how imports from a specific country affects a firm's decision to export to that country (the … market size on the export margins is magnified when imports in intermediates are accounted for. Indeed, to the extent that …