We use plant output and input prices to decompose the profit margin into four parts: productivity, demand shocks, mark … the impact of productivity, and other market fundamentals, on plant exit. A dynamic simulation that compares the … distribution of productivity with and without the trade reform shows that improvements in market selection from trade reform help …

Recent trade theory emphasizes the role of market-share reallocations across firms ("stealing") in driving productivity … growth, while the older literature focused on average productivity improvements ("learning"). The authors use comprehensive … role in aggregate productivity gains immediately following the start of India's trade reforms in 1991. However, aggregate …