, we find that a GE model with heterogeneous establishments and a sunk cost of starting to export is consistent with both … aggregate U.S. export growth and the changes in the number and size of U.S. exporters. The model also captures the non …-linear dynamics of U.S. export growth. A model without a sunk export cost generates substantially less trade growth and misses out on …

(78.7 vs. 46.4). The model overpredicts export growth partly because it misses the shift in manufacturing to relatively …