We first study export dynamics in a number of large devaluation episodes in emerging markets. Using plant level data, we document that exports expand gradually following a large devaluation primarily because the number of exporters expands gradually. We further show the strong negative...

We study export dynamics in a number of large devaluation episodes in emerging markets. Using plant level data, we document that exports expand gradually following a large devaluation primarily because the number of exporters expands gradually. We show that a model of exporter dynamics with sunk...

We document that international transactions for narrowly defined goods occur infrequently. We study the implications of this lumpiness of international trade for the response of prices and quantities during large devaluations. Using a calibrated inventory management model of international trade...

We decompose the change in the U.S. export share of GDP into an intensive and extensive margin. We then use a model of establishment export dynamics to infer the change in marginal and fixed trade costs from 1976 to 2002. We find the fall in tariffs and transport costs account for approximately...

We develop a model of establishment dynamics consistent with the establishment level heterogeneity in exporting and productivity to analyze the welfare consequences of trade reform. Specifically, we assume that firms face an up-front, sunk cost of entering foreign markets and a smaller...

We also study the dynamics of job turnover following an unanticipated cut in tariffs. In the transition to the new steady state, we find that job turnover temporarily rises as workers are reallocated from less productive non-exporters to more productive exporters. These increases in job turnover...

Using firm level data, Bernard and Jensen (1995, 1999, 2001) find that exporters are bigger and more productive than non-exporters. These studies also find that the identity of exporting firms changes over time and that fixed entry and participation costs influence firm's decision to enter and...

This paper evaluates the welfare gains to trade reform in a model of endogenous export participation. Specifically, assuming that firms face an up-front, sunk cost of entering foreign markets and a smaller period-by-period continuation cost, we derive the discrete entry and exit decisions...

In a closed economy general equilibrium model, Hopenhayn and Rogerson (1993) find large welfare gains to removing firing restrictions. We explore the extent to which international trade alters this result. When economies trade, labor market policies in one country spill over to other countries...