Firms adjust to differences in market size and demand uncertainty by changing the frequency and size of their export … well as inventory and per shipments costs. Using a cross section of monthly firm-product-destination level French export … data we confirm that firms adjust on both margins for market size. In a stochastic setting, firms adjust to increased …

. Firms facing this trade-off choose between export and foreign production according to their expected profits. The model is … activities of German multinationals. Proximity-concentration theory which we derive our model from shows that firms face a trade …We derive and estimate an econometric model of export versus foreign production using firm-level data on foreign …

services. Above a particular trade level, transport service suppliers find it profit-maximizing to invest in an advanced … efficient technology which is driven, in turn, by the bilateral export level. A simulation exercise reveals that ignoring the … and the level of exports between two countries. We find that trade partners with 10% more exports enjoy 0.8% lower …