Kehoe, Timothy; Pujolas, Pau; Brooks, Wyatt - Society for Economic Dynamics - SED - 2014
In the standard heterogeneous firm model of Hopenhayn (1992) and Melitz (2003), more efficient firms export and trade liberalization leads to higher average efficiency among firms. In data for Columbian plants 1981–1991, we see that the average level of productivity among exporters is...