prices, productivity levels and markups as functions of openness to trade at a sectoral level. The theory lends itself … evidence that trade openness exerts a competitive effect, with prices and markups falling and productivity rising. Consistent …We present, extend and estimate a model of international trade with firm heterogeneity in the tradition of Melitz (2003 …

prices, productivity levels and markups as functions of openness to trade at a sectoral level. The theory lends itself … evidence that trade openness exerts a competitive effect, with prices and markups falling and productivity rising. Consistent …We present, extend and estimate a model of international trade with firm heterogeneity in the tradition of Melitz (2003 …

prices, productivity levels and markups as functions of openness to trade at a sectoral level. The theory lends itself … evidence that trade openness exerts a competitive effect, with prices and markups falling and productivity rising. Consistent …We present, extend and estimate a model of international trade with firm heterogeneity in the tradition of Melitz (2003 …

-protected importables. Moreover, major external shocks to the economy (including increases in world prices of fuel in 2007 and early 2008 … the effects of changes in world prices and to assess dynamic effects of shocks and policies on growth and income …

-intensive sectors. We utilize this sectoral difference in how exports are affected by growth to identify the causal effect of trade with … downward pressure on U.S. producer prices and a large effect on productivity. When LIC exporters capture 1% U.S. market share …, producer prices decrease by 3.1%, which is nearly fully accounted by a 2.4% increase in productivity and a 0.4% decrease in …