There is a growing number of studies that investigate the effect of trade liberalization on productivity and nearly all … assume that trade policy is independently determined of productivity, hence it is exogenous. I show that this assumption is … of trade protection, productivity directly influences tariffs. Moreover, this productivity-tariff relationship partly …

Ample evidence from micro data suggests that productivity at establishment level is dominated by idiosyncratic factors …. The productivity differences across establishments are very large and persistent even with the narrowest definition of … industries. There is an attempt to identify sources of frictions that cause such productivity dispersion and negatively affect …