exports. The paper modifies Arkolakis’s (2010) model of trade with heterogeneous firms by introducing endogenous quality and … choice of lower-quality products dominates the price distortion effect resulting from credit constraints. However, a … competing theory based on the alternative assumption that quality is exogenous across firms would predict completely opposite …

's producers to upgrade the quality of the goods that they export. The paper first documents two stylized facts regarding the …'s (2003) model of trade with heterogeneous firms by introducing endogenous quality choice. The model predicts that a reduction … in the import tariff induces an incumbent importer/exporter to increase the quality of its exports and to raise its …

Melitz's (2003) model of trade with heterogeneous firms by introducing endogenous quality, credit constraints and marketing … because the choice of higher-quality inputs is associated with higher productivity. Second, tighter credit constraints faced … by a firm reduces its optimal prices as its choice of lower-quality inputs dominates the price distortion effect …

exports. The paper modifies Arkolakis's (2010) model of trade with heterogeneous firms by introducing endogenous quality and … choice of lower-quality products dominates the price distortion effect resulting from credit constraints. However, a … competing theory based on the alternative assumption that quality is exogenous across firms would predict completely opposite …

This paper presents theory and evidence that tighter credit constrains force firms to produce lower quality. The paper … develops a quality sorting model that predicts that tighter credit constraints faced by a firm reduce its optimal prices due to … its choice of lower-quality products. Conversely, when quality cannot be chosen by a firm in an efficiency sorting model …

exports. The paper modifies Arkolakisś (2010) model of trade with heterogeneous firms by introducing endogenous quality and … choice of lower-quality products dominates the price distortion effect resulting from credit constraints. However, a … competing theory based on the alternative assumption that quality is exogenous across firms would predict completely opposite …