This paper asks how market expansion contributes to productivity growth. It investigates whether entry to both new … international markets and new domestic markets is associated with greater productivity growth. It also examines whether exit from …

-dimensional heterogeneity that current models featuring one-dimensional heterogeneity (efficiency differences among plants) cannot fully explain … changes in tariffs and real exchange rates, whether differences in their efficiency levels are controlled or not …

allocative and productive efficiency. We review theory and recent evidence on these linkages and also explore a third effect on …